Japan: Coal imports up by 8% m-o-m in Jul'20
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Japanese coal imports have continued the uptrend during Jul '20, rising 8% m-o-m to 14.45 mn t compared with 13.44 mn t in Jun '20, but it remains 22% lower than the levels attained in Jul '19.
The country had witnessed a steep fall in power demand as a consequence of the measures being taken to curb the spread of COVID-19, following which imports had fallen significantly during May '20. However, after a spell of high temperature and an easing of economic restrictions, imports have slowly recovered.
Besides, lower availability of nuclear power as a result of maintenance work being carried out at the plants has also supported coal demand.
Grade-wise break-up indicates that non-coking coal imports increased 13% m-o-m to 10.24 mn t in Jul '20, at a time when there was not much support offered from the steel sector. Incidentally, coking coal imports had fallen to a 5-month low during Jul '20, recorded at 2.83 mn t.
| Grade | Jul'20 | Jun'20 | % Change |
| Non Coking Coal | 10.24 | 9.03 | 13% |
| Coking Coal | 2.83 | 3.2 | -12% |
| Pet Coke | 0.38 | 0.3 | 27% |
| Anthracite | 0.24 | 0.24 | 0% |
| Met Coke | 0.01 | 0.02 | -50% |
| Others | 0.74 | 0.64 | 16% |
| Grand Total | 14.45 | 13.44 | 8% |
Source: Japanese Customs | Quantity in mn t
Major Coal Suppliers:
The growth in Japan's monthly coal intake was majorly supported by higher supplies from Australia and Indonesia.
Australian coal export to Japan increased 14% m-o-m to 8.25 mn t in Jul '20 compared with 7.21 mn t in Jun '20, but was assessed 23% lower on the year from 10.74 mn t in Jul '19.
Indonesian coal exports on the back of lower prices, grew 65% m-o-m to 2.66 mn t in Jul '20 compared with 1.61 mn t in Jun '20, while exports from other suppliers viz. Russia, US and Canada were down on the monthly basis.
Outlook: Lower nuclear availability expected for the rest of the year holds a positive outlook for Japanese coal imports, but could face stiff competition from gas-based power generation.
