South Korean coal imports have fallen 10% on the year to 67.35 MnT during the first half year period of CY19 (Jan’19-Jun’19), compared with 74.73 MnT noted in the corresponding period of CY18.
The Korean government has placed a range of measures to reduce the country’s reliance on coal-fired power generation, which have ultimately lowered coal intake during CY19.
South Korean government’s third Basic Energy Plan finalised in Jun’19, was further aimed to a shrinking role for coal-fired power in the country’s energy system over the next three decade. Besides, in order to accelerate energy transition away from coal, the import tax on LNG was further lowered by 75%, while the tax on coal was raised by 28%.
The country has witnessed a drop in coal imports on y-o-y basis for the fourth successive month during Jun’19. Coal volumes in Jun’19 had fell to 10.27 MnT against 11.73 MnT in Jun’18, which was also 10% lower on the month from 11.36 MnT in May’19.
Grade-wise Coal Imports:
South Korea has recorded a fall in imports of all the major coal grades during H1 CY19 period.
Imports of non-coking coal accounted for 75% in total coal intake, but its volume had come down 6% Y-o-Y to 50.45 MnT in H1 CY19.
South Korean coking coal imports declined by 9% Y-o-Y to 11.41 MnT in the first 6 months of CY19, along with Anthracite coal which was marked 3.72 MnT in the period.
Imports of coke products also remained subdued in H1 CY19, with intake of Met coke and Pet coke being recorded at 0.63 MnT and 0.17 MnT respectively.
| Grades | H1 CY19 | H1 CY18 | % Change |
| Non Coking Coal | 50.45 | 53.42 | -6% |
| Coking Coal | 11.41 | 12.52 | -9% |
| Anthracite | 3.72 | 4.07 | -9% |
| Pet Coke | 0.63 | 0.66 | -5% |
| Met Coke | 0.17 | 0.18 | -6% |
| Others | 0.97 | 3.88 | -75% |
| Grand Total | 67.35 | 74.73 | -10% |
Source: South Korean customs
Quantity in MnT
Major Coal Exporters:
Australia remained the chief coal supplier to South Korea in H1 CY19 period. Interestingly, the country had posted the only positive growth y-o-y as seen among the major coal exporters.
Australian coal exports increased 12% Y-o-Y to 24.59 MnT in H1 CY19 as against 22.03 MnT in H1 CY18. However, export volume in Jun’19 had fell to the lowest mark for CY19, recorded at 2.94 MnT.
Indonesian coal export to South Korea dropped 13% Y-o-Y to 16.2 MnT in H1 CY19, but had seen an uptick in monthly supplies to 2.37 MnT in Jun’19 as against 1.87 MnT in May’19.
Russia was the third-largest coal supplier in H1 CY19, with exports of 12.72 MnT coal.
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