South Korean Coal Imports Down 25% M-o-M in Mar’19

South Korean coal imports continued its declining trend in Mar’19, as the country accelerates transition away from coal. Monthly imports of 9 MnT in Mar’19 had attained its lowest total since May 2000.

Besides, imports were also 29% lower on the year from 12.7 MnT in Mar’18, as per the data provided by customs.

Since the inauguration of the new government in 2017, South Korea has taken a range of measures to reduce coal consumption in the power sector. These include- cancellation of new coal-fired power plant capacity, shutdown of older plants, and increased taxes on coal and reduced taxes on gas to reduce the price gap between the two fuels.

However, policies to support the energy transition have impacted the intake of coal shipments into the country.

During the first quarter of CY19 (Jan’19-Mar’19), South Korean coal imports have fallen 7% Y-o-Y to 34.8 MnT compared with 37.42 MnT recorded in same period last year.

Grade-wise Coal Imports in Mar’19:
South Korean non-coking coal imports decreased 24% M-o-M to 6.55 MnT in Mar’19. Coking coal shipments emulated the same decline rate to fall to 1.57 MnT in the month.

Imports of Anthracite coal were down 18% M-o-M to 0.64 MnT in Mar’19.

Source: South Korean customs
Quantity in MnT

Major Coal Exporters:

Australia, Indonesia and Russia remain the major coal exporter to South Korea in Mar’19.But, a lower coal intake from South Korea have taken a toll on supplies of these countries.

Australian coal exports to South Korea dropped 12% M-o-M to 3.74 MnT in Mar’19, which was also 12% lower on the year from 4.23 MnT in Mar’18.

Indonesian coal exports were down 33% M-o-M to 1.96 MnT, along with Russia which had witnessed 26% fall in monthly coal export to South Korea.

Canada, South Korea, China, US and Colombia were among the other major coal suppliers during the month.