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S African Feb thermal coal exports slip 9.5% on-month to 6 million mt

South African thermal coal exports for February slumped 9.5% on the month to 6 million mt, the second month of falls, due to lower exports to Europe.

Shipments to European countries, including the Netherlands, Spain and Italy, totaled 454,399 mt during the month, plunging 75.7% from January’s 1.87 million mt. This was due to no coal being sent to the UK, Greece, France, Denmark or Portugal during February, as well as exports to the Netherlands slipping 83% and Spain by 52% month on month.

South African coal has not priced into the European market this year, with European-delivered CIF ARA spot prices often below or on par with levels seen in the Richards Bay FOB market.

On the other hand, shipments to India rose 39% from January to 2.8 million mt, with the country stocking up before the May-September monsoon season.

At the same time, UAE imported 95% more South African coal at 204,887 mt, and Israel also increased its intake by 47% on-month to 492,942 mt.

Exports to Turkey were stable at 673,730 mt, as well as to the US at 50,000 mt and to Pakistan at 55,000 mt. Both China and South Korea imported no South African coal during February.

Spot FOB Richards Bay 6,000 kcal/kg NAR coal prices fluctuated around the mid-$60s/mt level during February, ending the month at $65.30/mt FOB after reaching an intra-month high of $67.15/mt FOB on February 16.
Source: Platts