China's Met Coke Exports Plummet as COVID-19 Hampers Steel Production
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China's coal exports have reduced by 59.6% on a year-on-year basis to 1.27 million metric tons (MnT) in the two-month period of this year (Jan-Feb'20), as compared to 3.15 MnT in the corresponding period of the previous year (Jan-Feb'19), as per the latest customs data obtained by CoalMint Research.
Furthermore on a cumulative basis, China's coal exports have totaled 12.08 MnT in the eleven month period of the current fiscal year (Apr'19-Feb'20), down 29.86% against the aggregate exports of 17.22 MnT recorded during the same period of FY 2019 (Apr'18-Feb'19).
Non-coking coal exports from China have decreased by 84.6% Y-o-Y to 0.07 MnT in Jan-Feb'20 against 0.46 MnT in Jan-Feb'19.
Coking coal exports from China have decreased by 58.4% Y-o-Y to 0.13 MnT in Jan-Feb'20 against 0.31 MnT in Jan-Feb'19.
Most notably, metallurgical coke coal exports from China have decreased by a whopping 74.2% Y-o-Y to 0.36 MnT in Jan-Feb'20 against 1.40 MnT in Jan-Feb'19.
Given the rapid spread of COVID-19 since end-January 2020, there has been an inevitable decline in demand for steelmaking raw materials, including met coke, owing to widespread steel mill closures across major Asia-Pacific nations along with the wider European market.
In Europe, several other blast furnaces are operating at low levels of productivity, and are thus consuming less met coke. Further, European steel demand has plunged as much of the continent's automotive sector has ceased production in recent days following the corona virus outbreak. The automotive industry accounts for 12% of all steel demand.
Major Coal Importers from China in Jan-Feb'20:
A country wise breakup of Chinese export data reveals that the major proportion of China's outbound coal shipments are traditionally exported to Japan, South Korea, Malaysia and India.
Japanese coal imports from China decreased by 51.67% Y-o-Y to 0.17 MnT in Jan-Feb'20 against 0.36 MnT in Jan-Feb'19.
South Korean coal imports from China decreased by 58.28% Y-o-Y to 0.29 MnT in Jan-Feb'20 against 0.70 MnT in Jan-Feb'19.
Malaysian coal imports from China decreased by 55.26% Y-o-Y to 0.14 MnT in Jan-Feb'20 against 0.32 MnT in Jan-Feb'19.
Indian coal imports from China decreased by 79.18% Y-o-Y to 0.10 MnT in Jan-Feb'20 against 0.48 MnT in Jan-Feb'19.
The following table provides a more detailed breakup of the coal exporting countries to China.
| China Export Jan-Feb'20 | |||
| Commodity/Sub Commodity/Importing Country | 2020 (Jan-Feb) | 2019 (Jan-Feb) | % Change Y-o-Y |
| Coal | 1,273,681 | 3,151,748 | -59.6 |
| Pet Coke | 416,904 | 488,283 | -14.6 |
| United Arab Emirates | 73,732 | 82,227 | -10.3 |
| Australia | 70,176 | 33,915 | 106.9 |
| South Korea | 49,209 | 86,149 | -42.9 |
| India | 46,693 | 135,689 | -65.6 |
| Others | 177,095 | 150,303 | 17.8 |
| Met Coke | 361,920 | 1,404,334 | -74.2 |
| Malaysia | 108,969 | 208,494 | -47.7 |
| India | 52,222 | 339,369 | -84.6 |
| Indonesia | 39,396 | 128,189 | -69.3 |
| Japan | 35,808 | 53,741 | -33.4 |
| Others | 125,526 | 674,541 | -81.4 |
| Anthracite | 249,236 | 480,438 | -48.1 |
| South Korea | 126,358 | 227,852 | -44.5 |
| Indonesia | 49,555 | 29,907 | 65.7 |
| Taiwan | 39,323 | - | 100.0 |
| Japan | 33,339 | 187,376 | -82.2 |
| Others | 661 | 35,303 | -98.1 |
| Coking Coal | 129,998 | 312,492 | -58.4 |
| South Korea | 82,998 | 207,992 | -60.1 |
| Malaysia | 25,000 | 104,500 | -76.1 |
| Japan | 22,000 | - | 100.0 |
| Non Coking Coal | 70,766 | 459,298 | -84.6 |
| Japan | 37,979 | 115,010 | -67.0 |
| South Korea | 32,754 | 173,270 | -81.1 |
| Myanmar | 33 | 29,809 | -99.9 |
| Taipei | - | 102,244 | -100.0 |
| Indonesia | - | 38,965 | -100.0 |
| Others | 44,857 | 6,904 | 549.7 |
| Japan | 44,856 | 3,868 | 1059.5 |
| Germany | 1 | - | 100.0 |
| South Korea | - | 3,011 | -100.0 |
| Indonesia | - | 25 | -100.0 |
Source: CoalMint Research | Quantity in MT