Australia: Coking coal export shipments down by 17% in July 2024, volumes to India dip

Australia's coking coal shipments stood at 11.94 million tonnes (mnt) in July 2024 against 14.43 mnt in June 2024, down by 17.25% m-o-m, as per data maintained with BigMint. Moreover, exports drop over 1% y-o-y to 11.94 mnt in July 2024 as against 12.05 mnt in July 2023. Exports remained higher in June amid restocking needs ahead of monsoon season.

Exports to India, Japan drop m-o-m

In July, export dynamics to key Asian markets saw notable decline. Shipments to India dipped to 2.34 million tonnes (mnt) in July 2024 from 3.51 mnt in June 2024, marking a 34% decline m-o-m. Concurrently, exports to Japan saw a slight downturn, settling at 2.59 mnt in July 2024 compared to 2.64 mnt in June 2024, reflecting a 2% m-o-m dip. However, South Korea recorded imports at 1.59 mnt in July 2024 versus 1.30 mnt in June 2024, showcasing a 23% increase.

Conversely, exports to China experienced a dramatic change, declining by 27.04% m-o-m from 1.59 mnt in June 2024 to 1.16 mnt in July 2024.

Meanwhile, shipments to Vietnam experienced a substantial decline, falling sharply by 62% to 0.25 mnt in July 2024 from 0.65 mnt in June 2024 m-o-m.

DBCT continues to remain largest load port, volumes drop

In July, port activities showcased diverse trends across key locations. The Dalrymple Bay Coal Terminal (DBCT) saw decline in coking coal shipments, loading 4.27 mnt in July 2024 compared to 4.93 mnt in June 2024, marking a 14% m-o-m decrease. Moreover, Gladstone Port experienced decrease, handling 3.33 mnt in July 2024, down from 4.31 mnt in June 2024, a significant 23% m-o-m decrease in coking coal exports.

Haypoint Port recorded stable loading volumes at 2.86 mnt in July 2024 versus 2.82 mnt in June 2024. However, Port Kemble reported reduced activity, loading 0.12 mnt in July 2024 compared to 0.75 mnt in June 2024, representing a 84% m-o-m drop in shipments.

Prices fall m-o-m in July- Average Australian premium HCC coking coal prices dipped 4% m-o-m to $260/tonne (t) CFR India in July, 2024 from $270/t in June. A temporary hike, due to an accident at Anglo American, had lifted offers but, later in the month, prices fell on demand-supply mismatch in major importing countries. Prices also fell on account of slow demand amid oversupply. Traders were under increasing pressure to lower offers amid oversupply. The weakened market even led to reselling of cargoes.