South Africa Coal Exports Likely to Fall in Oct'16

South African coal exports are expected to fall in Oct 2016, according to data maintained by CoalMint. The nation's export might witness a downfall of around 8% M-o-M in Oct'16 against 6.30 MnT (P) exported in Sep'16. Data is maintained based of vessel lines at various ports in South Africa.

South Africa exported 78 MnT in CY'15, the export might come down in CY'16. The nation exported around 59 MnT during Jan'16-Till date, registered a downfall of around 8% Y-o-Y against 64.71 MnT exported in same period last year.

The major reason for the downfall is believed to be comparatively high FOB prices and increased production of coal in Indian domestic market.

India is cutting down its import owing to additional supply of coal from Coal India Ltd (CIL). India is the largest export destination of South African Coal, the nation has exported around 30 MnT Coal to India during Jan'16-Till date. Export to India went down from Jun'16 and is decreasing till date.

The nation exported 4.52 MnT Coal to India in May'16, export came down to 2.32 MnT in Aug'16. Export to India mightfurther come down to around 2 MnT in Oct'16.

20 MnT Special E-Auction by Coal India

CIL's (Coal India Ltd) is also conducting a Special E-auction of coal for various sectors, including power, during the 20th, 21st, 24th and 25th of Oct'16 by offering 20 MnT of coal. The enhanced domestic availability of coal is likely to put further pressure on South African coal exports to India.

Recently being the index of South African Thermal Coal increased by $16-$20, because of which a majority of Indian steel manufacturers are shifting their interest from importing South African Coal to domestic consumption.