South Africa: Non-coking coal exports remain largely stable m-o-m in Nov'24

• Export volumes grow 40% y-o-y
  
  
• Shipments to India up 9% m-o-m
  
  

South African non-coking coal exports in November 2024 totalled 6.32 million tonnes (mnt), a marginal 1% rise from 6.23 mnt in October. However, y-o-y, exports showed a significant 40% increase from 4.53 mnt in November 2023.

Exports to India up by 9% m-o-m

India imported 3 mnt in November, marking a 9% increase from 2.75 mnt in October. Y-o-y, imports rose 24%, compared to 2.41 mnt in November 2023. South Korea remained the second-largest importer at 0.6 mnt.

Market overview

Indexed portside ex-Gangavaram prices of RB3 (4800 NAR) from South Africa stood at INR 7,610/t in November compared to INR 7,630/t in October, reflecting a minuscule dip of INR 20/t. Meanwhile, CNF Gangavaram prices of the same grade stood at $80/t in November, unchanged m-o-m.

South African thermal coal prices held steady m-o-m following limited trades in a cautious market. There were ample stocks at ports and with buyers, which led to downward pressure on trades. Domestic supply was also sufficient, with Coal India's dispatches edging up m-o-m. Additionally, sponge iron prices in India registered a sharp decline (7% m-o-m), which restricted buyers from increasing their inventories.

Prices of sponge iron (pellet-based), ex-Raipur, moved down by 7% to INR 25,550/t in November from INR 27,500/t in October. Sponge CDRI mix dropped by the same percentage to INR 26,920/t from INR 28,940/t in the previous month.

Weak demand in the semi-finished and finished steel markets kept sponge iron prices depressed, with subdued procurement leading to offer reductions and negative margins.