Australian thermal coal exports rose by 2% m-o-m to 15.48 million tonnes (mnt) in March 2024, as per BigMint’s vessel line-up data. Moreover, exports dropped by 6% as compared to 16.39 mnt in March 2023. The rise in exports coincided with the end of the rainy season in Australia, leading to improved supply conditions.
Additionally, prices of Australian thermal coal (5500 NAR) experienced a marginal drop to $95.75/t in March 2024, down from $97.2/t in February.
Country-wise exports
Australian thermal coal exports to Japan stood at 5.25 mnt in March, down 18% m-o-m. This figure accounted for almost 34% of total exports.
Exports to Taiwan rose by 49% in the month under review, with shipments at 2.05 mnt. Exports to South Korea totalled 1.03 mnt. Exports to China rose by 11% during the month. Exports to China in March stood at 5.08 mnt as against 4.57 mnt in February.
Exports to India dropped 20% during the month. Exports in March stood at 0.33 mnt as against 0.41 mnt in February 2024. Shipments dropped amid robust supply which continued to put pressure on exports. In India, Coal India Limited typically ramps up production prior to the summer season to counterbalance production losses during the monsoon period. However, some imports may occur before the onset of monsoons, particularly as certain end-users seek to stock up before rainfall disrupts domestic mine operations.
State-run CIL continued its robust performance in terms of coal production in FY’24. CIL’s production rose by 10% y-o-y to 773.6 mnt in FY’24 as against 703.2 mnt in FY 2023. The total dispatches have risen by 753.5 mnt as compared to 694.7 mnt in FY’23.
Moreover, shipments to Indonesia surged by 69% to 0.15 mnt in March as against 0.09 mnt in February.
Port-wise exports
Exports from Newcastle rose by 9% m-o-m at 11.97 mnt in March as against 10.96 mnt in February. Shipments from Abbot Point stood at 1.17 mnt in March as against 1.94 mnt in February.
Supplies from Gladstone dropped by 15% m-o-m to 1.16 mnt in March as against 1.36 mnt in February. However, exports from DBCT rose by 80% m-o-m to 0.76 mnt in March as against 0.42 mnt in February.
Outlook
It is expected that exports may pick up in the near term as Indian buyers gear up for the seasonal demand spike ahead of monsoons, although procurement might be delayed due to high stockpiles at power plants.
Source: Bigmint
