South Africa exported 6.2mn t of coal in April, a decrease of nearly 1mn t on the year but 9pc higher than the 2019-23 average for April, Global Trade Tracker (GTT) data show. Despite south Asian demand driving the majority of coal exports, volumes to India fell by almost 20pc in April to 2.95mn t, on higher availability of domestic coal in the country.
India's sponge iron and steel sector called for most of the South African exported coal volumes, but there was "hardly any urgency to buy" during the election season in India, a source said. Market participants also attribute the decline to the availability of domestic coal, which was supported by competitive prices in April.
On the other hand, South African volumes to Pakistan doubled on the year despite, the country's tussle with the lack of foreign exchange to pay for imported coal.
Deliveries to Europe have fallen significantly since Russia's invasion of Ukraine in 2022, and even collective demand from all of the other countries has not been able to offset the loss of the European market. Italy, which plans to shut down all but two of its coal-fired plants by 2025, recorded South African receipts of just 82,500t in April, against 300,000t at the same time last year. Germany plans to exit coal by 2030 as an unofficial target, with most coal-fired units in grid reserves now required to maintain lower coal stocks.
Meanwhile, Transnet Freight Rail's underperformance continues to undercut the availability of tonnes that mining firms have on offer. A four-day derailment in early April also contributed to lower-than-average weekly exports of about 1mn t.
Exports to Pakistan rise on cement-sector demand
Exports to Pakistan stood at 395,000t in April, with frequent spot demand from imported coal-fired utilities. Of the total volumes of coal received by Pakistan in April, about 47pc was despatched to the cement industry, followed by smaller volumes to the textile, paper and board industry and chemical industry, according to data seen by Argus.
The country's coal burn from imported coal-fired plants inched up in April as well, "but the government would rather opt for load-shedding than pay heavily for imports", a source said.
Pakistan's government has directed three plants to convert to Thar coal, because the country is reeling from an economic crisis with less availability of foreign currency reserves to pay for imports. But logistics remain a problem in Pakistan, where the lack of infrastructure hinders the movement of coal on railways or trucks to utilities farther from the mine mouths.
Despite speculation that Pakistan may soon abandon seaborne coal as a result of its currency reserve woes, its cement-sector demand is unlikely to waver in the short term because of the lack of domestic coal, a trading firm said.
Northeast Asian deliveries jump
China, Japan, South Korea and Taiwan took in 1.75mn t of coal exports from South Africa, an increase of 1mn t from April 2023. Shipments to South Korea accounted for 861,000t from zero a year before.
Sanctions on Russian coal producer Suek in February reshuffled trade flows into South Korea and Taiwan, prompting more buying from South Africa to replace high-calorific-value, low-sulphur Russian supply.
Deliveries into east Africa battle trucking costs
Exports into Kenya, Mozambique, Mauritius and Madagascar fell by 500,000t from a year earlier. Exports from Komatipoort into Mozambique, which constitute a greater share of exports to east Africa, fell by 60pc on the year. Volumes going into Mozambique from South Africa are classified as trucked coal based on customs data, suggesting the breakeven costs of trucking coal pushed the tonnes out of the export market.
| South Africa coal exports | t | ||
| Country | 2023 | 2024 | ± y-o-y |
| India | 3,647,268 | 2,945,614.0 | -19% |
| Pakistan | 145,200 | 394,674 | 172% |
| Italy | 309,734 | 82,500 | -73% |
| Germany | 220,040 | 55,000 | -75% |
| South Korea | 0 | 861,537 | na |
| Mozambique | 462,760 | 181,733 | -61% |
| — Global Trade Tracker | |||
