South Korea: Coal Imports Down 8% M-o-M in Oct’18

South Korean coal imports have decreased 8% on the month following the decline in non-coking and coking coal shipments during Oct’18.

According to the data provided by South Korean customs, imports by the country totaled 11.87 MnT in Oct’18 compared with 12.86 MnT in Sep’18, but were 8% higher on the year from 11.01 MnT recorded in Oct’17.

South Korea, Asia’s fourth largest economy, has been grappling with worsening air quality, which has compelled the government to take severe actions to reduce pollution.

In a recent development, media reports have claimed that the country was to cap operations of some coal and oil-fired power plants at 80% for the first time a week earlier on Wednesday 7 Nov’18 as most cities including its capital Seoul issued air pollution advisory.

The measure kicks in when air pollution advisory is issued and the concentration of fine particulate matter with diameters of less than 2.5 micrometers (PM 2.5) is expected to exceed 50 micro grams per cubic meter until the following day.

Consequently, seven coal-fired power plants with a total capacity of 820 megawatts (MW) and four oil-fired power plants with a combined capacity of 280 MW were stated to lower their operations from 6 a.m. (2100 GMT) to 9 p.m. on Wednesday, as stated by South Korean energy ministry.

(However, no official confirmation was received till the writing of this article.)

South Korean coal imports in CY18 have been affected by government efforts to shift away from coal-fired power generation.

Total imports in the first 10 months of CY18 (Jan’18-Oct’18) have slipped 1% Y-o-Y to 125.22 MnT against 126.28 MnT in same period last year. Import of non-coking coal in the period has fallen 2% Y-o-Y to 88.95 MnT.

Grade-wise Coal Imports in Oct’18:

Anthracite coal had recorded the only noticeable growth on the month among the majorly imported coal grades in Oct’18. Imports of Anthracite coal were up 97% on the month to 0.65 MnT.

Non-coking coal import was down 14% M-o-M to 8.18 MnT, coking coal imports decreased 9% on the month to 1.97 MnT in Oct’18.

Source: South Korean customs
Quantity in MnT

Major Coal Exporters:
Australia remained the largest coal supplier to South Korea in Oct’18, despite recording a 17% fall in monthly exports. Export in Oct’18 was 3.74 MnT against 4.52 MnT in Sep’18, but up 6% Y-o-Y from 3.52 MnT in Oct’17.

Indonesia became the second largest coal exporter in Oct’18 with a 5% increase in monthly coal supplies to Korea, whereas Russian coal exports had decreased 13% on the month.

Canadian coal exports increased 42% M-o-M to 1.42 MnT in Oct’18, also marking a remarkable growth of 141% on the year from levels attained in Oct’17.

Export from South Korea’s 5-largest coal supplier in CY18- South Africa was marked after a month’s absence at 0.12 MnT in Oct’18. Colombia, US, China and Mozambique were the other major coal exporters in Oct’18.

Source: South Korean customs | Quantity in MnT