Australia's Sep coking coal exports rebound on demand growth in India and Japan
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Australian coking coal exports witnessed a 16% m-o-m jump to 14.68 mn t in September from 12.64 mn t in August, according to latest vessel lineup data maintained with CoalMint.
Meanwhile, Australia's total coal export shipments contracted 11% to 88.31 mn t in Q3 CY20 (Jul-Sep'20), as compared to 99.28 mn t in the same quarter last year.
The country's cumulative exports totaled 271.13 mn t in the first nine months of the year, down 6.2% against the aggregate volume of 289.04 mn t exported during the corresponding period of last year.
Indian coking coal imports from Australia surge on improved demand
India has emerged to be the largest coking coal importer from Australia in the last quarter accounting for 28.2% share with total imports of 11.40 mn t.
Moreover, Indian coking coal imports from Australia increased by 15.7% m-o-m to 4.53 mn t in Sep'20, against 3.92 mn t in Aug'20.
India's domestic steel production had risen back to optimum levels with large-scale integrated steelmakers having ramped up capacity utilization at all major blast furnaces.
Furthermore, Indian finished steel prices remained relatively stable, and steel mills' profit margins were satisfactory -- both of which encouraged higher steel production and thereby necessitated restocking demand for coking coal.
Chinese coking coal imports from Australia dwindle amid restrictions
China has surpassed Japan as the second-largest importer of Australian coking coal in the last year, followed by South Korea, Vietnam and Taiwan. As yet, China and Japan together accounted for around 40% of Australia's total coking coal exports.
Ironically, demand for coking coal from Australia's main export market, China, is in a state of permanent decline as the country is rapidly transitioning to cleaner energy sourcing technologies.
Certain other factors, mainly governmental initiatives undertaken as longstanding efforts toward increasing self-reliance on domestically produced coal supplies, are also paving the way for diminished import demand from China.
Chinese coking coal imports from Australia decreased by as much as 37% m-o-m to 1.84 mn t in Sep'20, against 2.92 mn t in Aug'20.
The following table presents detailed country-wise breakups of coal exports from Australia during the past quarter.
| Country | Jul'20 | Aug'20 | Sep'20 | Q3 CY20 |
| India | 2.94 | 3.92 | 4.53 | 11.40 |
| China | 4.20 | 2.92 | 1.84 | 8.96 |
| Japan | 1.96 | 1.65 | 3.50 | 7.10 |
| South Korea | 1.39 | 0.77 | 1.61 | 3.78 |
| Vietnam | 0.76 | 0.80 | 0.78 | 2.34 |
| Taiwan | 0.51 | 0.61 | 0.81 | 1.93 |
| Indonesia | 0.31 | 0.32 | 0.38 | 1.01 |
| Others | 1.05 | 1.65 | 1.22 | |
| TOTAL | 13.11 | 12.64 | 14.68 | 40.44 |
Port-wise coking coal exports from Australia
Australia's Gladstone port was the biggest coking coal exporting port in the last quarter, accounting for almost 30% share with exports of over 12 mn t.
Coking coal exports from the port of Gladstone increased by 24.6% m-o-m to 4.24 mn t in Sep'20, against 3.40 mn t in Aug'20.
The following table presents detailed port-wise breakups of coal exports from Australia during the past quarter.
| Country | Jul'20 | Aug'20 | Sep'20 | Q3 CY20 |
| Gladstone | 4,456,363 | 3,401,819 | 4,237,461 | 12,095,643 |
| DBCT | 3,429,523 | 3,599,425 | 3,639,484 | 10,668,432 |
| Hay Point | 3,384,130 | 3,227,500 | 3,599,000 | 10,210,630 |
| Abbot Point | 1,467,702 | 1,634,100 | 1,769,725 | 4,871,527 |
| Port Kemble | 377,000 | 622,000 | 604,000 | 1,603,000 |
| Newcastle | 159,802 | 828,971 | 988,773 | |
| TOTAL | 13,114,718 | 12,644,646 | 14,678,641 | 40,438,005 |
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By Aditya Sinha
