Australian coking coal exports drop 4% m-o-m in Apr'24

Australian coking coal exports dropped by 4% m-o-m to 12.27 million tonnes (mnt) in April 2024 as against 12.83 mnt in March 2024. However, exports remained almost stable to 12.27 mnt in March 2024 as against 12.17 mnt in April 2023.

Australia's drop in coal exports can be attributed to the volatility in prices in April 2024. This has placed buyers from major importing countries in a wait-and-watch mode. Australia's FOB PHCC prices dropped by 14% m-o-m to $238/t in April 2024, compared to $278/t in March 2024. Meanwhile, Indian cooking coal buyers had sufficient inventory, and China's met coke producers accepted the fourth round of price hikes on May 1, 2024. The subsequent drop in met coke prices further affected market sentiment. All these factors collectively contributed to the decline in exports of coking coal from Australia.

Exports to India stood at 2.73 mnt, in April 2024, 5 21% m-o-m, Subdued demand and buyers waiting for further price corrections for monsoon restocking contributed to this drop in exports. Shipments to Japan dropped by by 18% m-o-m to 2.34 mnt in April 2024 as against 2.86 mnt in March 2024.

Exports to South Korea fell by 62% at 0.69 mnt in April 2024. Imports by China (drop by 6%) and Taiwan (up by 34%) were recorded at 1.25 mnt and 0.69 mnt, respectively. Shipments to Brazil increased significantly m-o-m to 0.71 mnt in April 2024.

Exports from DBCT increased by 18% m-o-m to 4.30 mnt in April 2024 as against 3.65 mnt in March 2024. Shipments from Gladstone stood at 2.82 mnt in April 2024 as against 4.07 mnt in March 2024. Supplies from Port Kemble and Abbot Point rose by 77% and 16%, respectively, in the month under review.