Coal news and updates

China buys SA coal in Feb after 7 months gap

March 18: Taking advantage of the prevailing low prices in January, Chinese companies appear to have re-entered the South African coal market and purchased the material, though in small quantity, which got delivered in February, according to data available with ICMW.

In fact, Chinese companies’ imports from South Africa in February happened after a gap of seven months since the last export tranches had taken place in June 2014.

According to data made available to ICMW by one of the promoters of the terminal, 164,784 tons of coal was exported to the Chinese port of Zhan Jiang through a vessel named Equator Prosper in February, 2015.

In fact this was the very first consignment of South African coal via RBCT to China after June 2014 when Chinese companies had imported 164,999 tons of steam coal. 

There were no exports of coal to China from South Africa in May 2014 either.

It is understood that mainly the weak economic situation in China and the softness in prices prevailing in the domestic market, coupled with the government’s initiative to curb imports, prompted this country to reduce its coal imports from South Africa. It now remains to be seen whether Beijing resumes its coal import steadily hereafter.

Incidentally, Chinese companies had imported 491,631 tons of coal from South Africa in February 2014.

With no imports for practically seven out of the 12 months in 2014, total exports of South African coal to China stood at 2,492,629 tons, down 81.28% from 13,318,304 tons exported during the corresponding period of 2013.

Following are the details of monthly coal exports through RBCT in 2014 and 2013 (in tons):