Monthly Archives: January 2019

Japan: Ferrous Scrap Exports Fall 10% in 2018

Scrap imports from China and Bangladesh observed significant fall in 2018

Japan – world’s 3rd largest ferrous scrap exporter after EU and US has registered the second consecutive fall in scrap exports in 2018. As per customs data, Japan exported 7,216,515 MT ferrous scrap in 2018, down 10% Y-o-Y as against 8,054,498 MT during the same period last year. This could be a result of falling demand mainly from China and other Asian markets, on the other hand, strong domestic demand on Olympics-2020 constructions.

According to the World Steel Association, Japan’s crude steel production observed a marginal fall this year, which recorded at 104.32 MnT over the span of 2018 as against 104.66 MnT recorded during the last year. Rising EAF based steel production supported domestic scrap demand in 2018.

In Q4-2018, Japan exported 1.73 MnT ferrous scrap, down 4% Q-o-Q against 1.81 MnT in Q3-2018 while down 16% Y-o-Y against 2.05 MnT in Q4-2017.

Japanese scrap exports rise 38% in Dec’18 – The country exported 673,236 MT ferrous scrap in Dec’18, up 38% M-o-M as against 488,463 MT in Nov’18. Recovery in the demand on restocking ahead of Chinese Lunar holidays from South Korea, Vietnam and China could have led to an increase in exports in Dec’18.

Notably, scrap exports hit a year high in Dec’18 which was recorded highest earlier to this in Dec’17 at 745,994 MT, witnessing 10% fall in Dec’18 on yearly premises.

South Korea remained the largest importer of Japanese scrap – South Korea imported 343,034 MT in Dec’18, up 37% M-o-M as against 251,068 MT ferrous scrap in Nov’18 occupying highest 51% share. South Korean steelmakers resumed scrap bookings from Japan amid sharply fallen scrap Japanese prices as compared to global levels in Nov-Dec’18. Notably, South Korean imports from Japan recovered in Dec’18 after hitting 2 years low in Nov’18.

Second largest importer, Vietnam imported 174,962 MT, up 61% M-o-M followed by China (126,825 MT, +35% M-o-M), Taiwan (15,303 MT, -46% M-o-M) and Indonesia (4,755 MT, +80% M-o-M) in Dec’18. Bangladesh and Thailand observed very minor import volume in Dec’18.

Japanese scrap export prices continue downtrend in Dec’18 – Average Japanese H2 scrap prices stood at JPY 31,500/MT, FoB in Dec’18, down against JPY 34,500/MT in Nov’18. Which moved down further to an average of JPY 30,000/MT, FoB in Jan’19. Considerable fall in prices and slow domestic demand could have resulted in rising in exports in December. Latest bid of Hyundai Steel for Japanese H2 stands at JPY 28,500/MT, FoB. While Japanese Mini mill Tokyo Steel kept prices steady amid plant maintenance activities in Jan’19.

Country-wise Japan ferrous scrap exports –

Country 2018 2017 Y-o-Y % Change  Dec’18 Nov’18 % M-o-M Change
South Korea 3.96 3.95 0.25% 0.34 0.25 36.00%
Vietnam 1.57 1.52 3.29% 0.17 0.11 54.55%
China 1.05 1.81 -41.99% 0.13 0.09 44.44%
Taiwan 0.42 0.37 13.51% 0.02 0.03 -33.33%
Bangladesh 0.08 0.20 -60.00% 0 0 _
Others 0.14 0.20 -30.00% 0.01 0.01 00.00%
Total 7.22 8.05 -10.31% 0.67 0.49 36.73%

Quantity in MnT,
Source: SteelMint Stats

 

Daily Update: Indian Semis Market Shows Mix Trend

Indian spot steel trades observed limited inquiries with the producers. However, despite fewer trades the prices of Sponge iron & Billet have marginally fluctuated by INR 100-200/MT, day-on-day.

While market participants reported that market may remain volatile over the upcoming budget of 2019 which is to be rolled out tomorrow.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 30,800-34,000/MT (USD 433-478) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 19,200-20,300/MT (USD 270-286); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

On 31st January 2019 (Thursday) INR to USD exchange rate stood at INR 71.15.

ICEX (Indian Commodity Exchange Ltd) Mar’19 contract for STEELLONG today open at INR 34,000/MT & last traded (IST 18:45) at INR 33,420/MT.

BSE Sensex closed at 36,256(+665) on Thursday, as against last day (Wednesday) at 35,591(-1).

NSE Nifty50 index was closed today at 10,830(+179).

Raw Materials

Imported scrap offers to India for HMS (80:20) Europe origin containers stood at around USD 310/MT, CFR Nhava Sheva.

Semi Finished

MMTC cancels 30,000 MT Pig iron export tender amid limited response. The company issued new export tender which is due to expire on 12 Feb’19.

The latest price assessment for Steel grade Pig iron stood at INR 27,700-28,000/MT ex-Raipur (Central India) & INR 27,000-27,300/MT ex-Durgapur (East region).

Neo Metaliks in Durgapur has maintained Pig iron prices despite no major trades and reported Steel grade at INR 27,200-27,300/MT ex-plant.

Ludhiana, North India based trade participants reported steel & foundry grade pig iron offers at INR 29,500/MT & INR 31,000-31,200/MT on FoR basis & excluding 18% GST.

Raipur, Central India based Integrated plants have increased Sponge P-DRI prices by INR 100/MT to INR 18,800/MT ex-plant.

Odisha based manufacturer, KJS Ahluwalia offered billet at INR 30,800-30,900/MT ex-plant. And also offering FeM 80 Sponge mix material at INR 19,200-19,300/MT ex-plant.

Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 19,400/MT & Billet at INR 30,800/MT ex-plant.

Odisha based manufacturer, Ganesh Metaliks offered Billet at INR 30,800-30,900/MT ex-plant, an official reported.

Bellary, Karnataka based furnace owners offering billet at around INR 32,200-32,300/MT on ex-plant basis.

Hare Krishna, a 300 TPD sponge manufacturer in Bellary, Karnataka has offered FeM 80 P-DRI at INR 18,600-18,800/MT ex-plant, an official reported.

BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 18,700/MT ex-Bellary, an official reported.

BIOP Steels in South India has decreased sponge prices by INR 100/MT, offering FeM 80 & 82 C-DRI lumps at INR 19,200/MT & INR 19,500/MT ex-plant, Karnataka; an official reported.

Finished long

Raipur based wire rod manufacturers kept offers unchanged and trade discount through the manufacturers/suppliers is around INR 1,000-1,200/MT. The offers for 5.5mm wire rod is hovering around INR 37,500/MT ex-Raipur & INR 36,300-36,500/MT ex-Durgapur.

Raipur (Central India) & Mandi Gobindgarh (North India) based pipe manufacturers kept offers at firm level, offering ERW pipe at around INR 37,000/MT & INR 40,000/MT; prices are ex-plant & excluding GST.

Hyderabad (South India) based manufacturer Hari Om Pipe Industries Ltd has offered ERW Pipe at around INR 39,000/MT ex-plant. (basic & excluding GST).

Reference prices as on 31st January 2019

Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Alang HMS(80:20) 25,600 25,500 25,700 + 100 26,100 25,900
Ex-Mumbai HMS(80:20) 25,100 25,000 25,200   0 25,100 25,200
Ex-Chennai HMS(80:20) 24,400 24,300 24,600   0 24,300 24,200
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 20,300 20,200 20,400 – 200 20,700 20,800
Ex-Rourkela Mix, FeM 80%, +/-1 19,200 19,100 19,300   0 19,500 19,900
Ex-Raipur Mix, FeM 80%, +/-1 20,100 20,000 20,200 – 100 20,600 20,800
Ex-Bellary Lumps, FeM 80%, +/-1 19,300 19,200 19,400   0 19,300 19,800
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 19,200 19,100 19,300 – 100 19,600 19,600
Ex-Raipur Lumps, FeM 80%, +/-1 18,800 18,700 18,900 + 100 19,100 19,100
Ex-Bellary Lumps, FeM 80%, +/-1 18,700 18,600 18,800   0 18,800 19,500
Ex-Hyderabad Lumps, FeM 80%, +/-1 19,300 19,200 19,400   0 19,500 20,200
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 33,600 33,500 33,700 + 50 34,100 33,700
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 31,000 30,900 31,100   0 31,400 31,200
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 30,200 30,100 30,300   0 30,700 30,300
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 30,600 30,500 30,700 – 100 31,100 30,600
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 33,300 33,200 33,400 – 200 33,300 32,900
Billet Ex-Mandi Gobindgarh 100×100 mm, IS 2831 34,000 33,900 34,100 + 100 34,500 34,000
Ex-Durgapur 100×100 mm, IS 2831 31,500 31,400 31,600   0 32,000 31,600
Ex-Rourkela 100×100 mm, IS 2831 30,800 30,700 30,900 – 200 31,100 30,700
Ex-Raipur 100×100 mm, IS 2831 31,600 31,500 31,700 – 100 32,050 31,500
Ex-Ahmedabad 100×100 mm, IS 2831 32,900 32,800 33,000 + 100 33,500 33,200
Ex-Mumbai 100×100 mm, IS 2831 33,500 33,400 33,600 – 200 33,500 33,100
Ex-Chennai 100×100 mm, IS 2831 32,500 32,300 32,500   0 32,200 33,300
Ex-Hyderabad 100×100 mm, IS 2831 32,000 31,900 32,100   0 32,500 32,500
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 36,800 36,600 37,000 – 100 37,500 37,400
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 36,000 35,800 36,200 – 100 36,300 36,500
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 34,600 34,500 34,700 – 100 35,000 35,300
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 36,800 36,500 37,000 – 200 36,500 36,400
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 36,800 36,700 37,000 – 200 36,600 37,400
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 36,000 35,800 36,200   0 36,700 37,200
Wire Rod Ex-Durgapur Wire Rod(5.5 MM) 36,400 36,200 36,600 – 100 37,100 37,900
Ex-Raipur Wire Rod(5.5 MM) 37,500 36,500 37,500   0 38,100 38,600

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research

 

India: Secondary Rebar Market Observes Limited Trades

Amid poor demand reported by traders & retailers, secondary rebar market in India has led to reduction in prices by INR 700/MT as per weekly analysis.

Factors to be considered as Liquidity Issue in market due to limited allocations of project works resulted in selling pressure and considerable Inventories in plants  may result in further decline in prices in near term.

Ongoing government projects are getting on with narrow pace due lack of funds allocation in most of the regions and developers are holding back new work till the new government policies as per sources.

Central region medium plants offering trade discounts around INR 300-400/MT and North as well as South trade concluded with considerable gap of INR 600-800/MT against offering prices.

West Region (Maharashtra/Gujarat) is slightly better to other regions as average stock maintained in medium mills and Industrialists are not expecting any major amendments.

However if major mills raise offer for Feb’19, market dynamics are likely to change.

Trade Updates (12 mm)

— North region based Rathi Steels current offering around at INR 37,900/MT.

— Central region, Raipur based – SPEED TMT current offering around INR 34,800/MT.

— Gujarat based Shreeyam Power & Steel Industries Ltd branding as National TMT current offering at INR 38,000/MT FoR.

— Gujarat based, Mono Steel (India) Ltd. (Mono TMT) current offering around INR 38,000/MT FoR.

— Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) TMT slightly decrease their prices by INR 200/MT to INR 36,400/MT.

— Jalna based Kalika Steels Alloys Pvt. Ltd. (Kalika TMT) slightly decrease their prices by INR 200/MT to INR 36,600/MT.

— Mumbai based Guardian Castings Pvt. Ltd. (Guardian TMT) slightly decrease their prices by INR 200/MT to INR 37,000/MT.

— Shakti Ferro Alloys in Chennai, (SSI TMT) unchanged their offering at INR 37,000/MT.

— South region based – VRKP Steel Industry Pvt. Ltd. – (VRKP TMT) offering at INR 37,600/MT.

Note – Prices mentioned above are ex-work, excluding GST & changes are day basis.

 

Japan: Flat Steel Exports Decline 4% in CY18 Over Strong Domestic Demand

According to latest customs data released, Japan flat steel exports which includes 7208 (HR coils /Plates), 7209 (CR coils), 7225 (Electrical sheets),7210/7212(GP/GC) reported decline of 4% in CY’18.Nation has exported 26.21 MnT of flat steel in CY18 as compared to 27.27 MnT in CY17.

Also on monthly basis country’s flat steel exports inch down by 1% in Dec’18 to 2.08 MnT against 2.11 MnT in Nov’18.
Meanwhile on yearly basis the same fell by 11% in Dec’18 against 2.33 MnT in Dec’17.

Thus strong demand in domestic market in construction sector ahead of 2020 Tokyo Olympics results to decline in exports volumes in CY18. Also USA has imposed 25% of trade tariffs on Japanese steel exports which  also resulted to decline in nation’s export volumes in CY18.

Meanwhile as per market reports Japanese based steelmakers couldn’t produce as they had planned last year due to series of natural disaster. Also it is anticipated that Japanese flat steel exports to remain flat this year amid higher domestic output in CY19.

Japan: Commodity Wise Flat Steel Exports in CY18

Sub Commodity CY’18 CY’17 Change in % Dec’18 Nov’18 Change in % Dec’17 Y-o-Y (Change in %)
HRC/Plate 13.22 13.86 -5 1.04 1.05 -1 1.22 -15
Electrical Steel 5.68 5.82 -2 0.44 0.47 -6 0.47 -6
Galvanised Steel 2.93 3.01 -3 0.22 0.24 -8 0.24 -8
CRC 2.43 2.51 -3 0.23 0.19 21 0.21 10
Pipes & Tubes 1.78 1.91 -7 0.13 0.14 -7 0.17 -24
Others 0.18 0.15 20 0.01 0.02 -50 0.02 -50
Grand Total 26.21 27.27 -4 2.08 2.11 -1 2.33 -11

Quantity in MnT
Source-SteelMint Research

Country-wise Japan flat steel exports in CY’18- China being the major importer of Japan occupying the share of 17% (4.38 MnT) of total exports in CY’18.

Thailand being second major importer occupies the share of 17% and stood at 4.34 MnT in CY’18.

Other importers include South Korea (12%) with 0.3 MnT, Vietnam (7%) with 0.12 MnT and Indonesia (6%) with 0.13 MnT procurements in Dec’18.

Japan Flat Steel Imports in CY’18- According to latest customs data released, Japan flat steel imports which includes 7208 (HR coils /Plates),7209 (CR coils),7225 (Electrical sheets),7210/7212(GP/GC) stood at 4.29 MnT in CY’18 plunged by 7% M-o-M against 4.62 MnT in the previous year.

Country-wise Japan flat steel imports in CY18- South Korea was the major flat steel exporter of Japan and has exported 2.78 MnT and occupied the share of 65% of share in CY18.

Second major exporter was Taiwan at 0.95 MnT accounts for 22% of share in CY18.

Other major importer was China at 0.49 MnT oocupies the share of 12% in CY18. Followed this Thailand, Sweden Vietnam and United States also exported flat steel in small volumes in CY18.

 

Will Japan see Higher Steel Output in 2019?

According to the head of Japan’s JISF (Japan Iron and Steel Federation) country’s crude steel output is likely to increase in 2019 amid strong local demand from construction segment ahead of 2020 Tokyo Olympics.

In 2018, Japan lost its second spot to India as world’s second largest steel producing country as its crude steel output slipped by 0.3% y-o-y basis to 104.3 MnT whereas that of India stood at 106.5 MnT.

The natural disasters in the second half of 2018 including torrential rain in western Japan during July, Typhoon Jebi in September and the earthquake in Hokkaido also in September, are being understood to affect the country’s production during the year. Apart from this the facility problems at the mills late last year also forced the overall production to be lower.

By product, the output of hot-rolled coil in 2018 was 41.1 MnT, down 3.7% in the same period and small bar production was 8.57 MnT up 0.8% year on year. Production of H-beams was 4.02 MnT, up 4.1% in the same period.

However, in 2019 Chairman of JISF is hopeful of an increase in country’s output in the absence of major impact from natural disasters.

The imposition of tariffs by U.S. on steel imports last year have impacted Japan’s steel exports in 2018. The same has dropped 4.2% y-o-y in 2018 to 36.53 MnT, sliding for a fifth straight year, with shipments to the United States plunging 19.6%. However, for 2019, JISF chief has forecasted that exports will remain flat.

In terms of demand, World Steel Association (WSA) has predicted that the steel demand in Japan will remain stable due to supportive factors on investment (record-high corporate earnings, the continuation of monetary easing, demand associated with the Tokyo Olympics and the increasing need for labour-saving investments).

 

Will Indian Mills Raise Domestic HRC Offers in February?

SteelMint in conversation with market sources learned that major Indian steelmakers are in discussions to increase HRC & CRC prices by around INR 750-1000/MT (USD 12-14) in domestic market for the month of February.

Since Indian steel mills are speculating that global flat steel prices will increase post Chinese Lunar New Year Holidays which is scheduled in first week of Feb, mills are expecting optimistic sentiments in domestic market too. Meanwhile higher global prices may result to reduction in new import volumes by Indian re-rollers which gives enough room to increase flat steel prices in domestic market.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 40,000/MT (ex-Mumbai) and INR 40,500-41,000 /MT (ex-Delhi). The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.

Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 45,500/MT (ex-Mumbai) and INR 45,000-47,000/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

In the month of January,Indian steel mills had rolled over flat steel prices amid cost effective imports and sluggish trades in domestic market. However mills have provided discounts and rebates to escalate buying.

However increase in HRC prices by major steel manufacturers in upcoming month will be accepted in domestic market or not remains a question considering dull domestic demand, ongoing limited trades and falling demand from automobile sector.

 

Australian Coking Coal Prices Inch Up on Uncertain Port Controls in Northeast China

Seaborne premium hard coking coal prices have started recovering since the middle of last week on the back of positive buying sentiment in China, although the 64 mid-vol prices were largely stable so far this week.

In China, fresh trades are presently being made to end-users for their restocking purposes ahead of the Lunar New Year, while domestic supply remains tight as mining activities have slowed down during the winter.

Lately, this has contributed to a sustained increase in Chinese prices for domestic materials, which could then result in end-users seeking seaborne coals.

Meanwhile, the Chinese government has imposed port restrictions on coking coal imports at several ports in Northeast China, effective Tuesday.

PRICE ASSESSMENTS
Latest offers for the Premium HCC grade are assessed at around USD 204/MT FOB Australia, higher by about USD 10.50/MT than the opening price of USD 193.50/MT at the start of last week (as on 21 Jan’19).

Offers for the 64 Mid Vol HCC grade are assessed at around USD 179.30/MT FOB Australia.
For Indian buyers, the above offers amount to USD 213.80/MT and USD 189.10/MT respectively on CNF India basis.

 

FMG Iron Ore Shipment Up 6% in Q2 FY19

Fortescue Metals Group – world’s 4th largest iron ore producer, depicted rise in quarterly shipments in Q2 FY19 at 42.5 MnT, up 6% as against last quarter at 40.2 MnT. On yearly basis, the shipment increased 5% as against 40.5 MnT in Q2 FY18.

FMG iron ore shipment for CY18 dropped to 167.9 MnT as compared to 168.8 MnT in CY17.

FMG iron ore production down 5% Q-o-Q

FMG recorded mined ore production at 49.2 MnT in Q2 FY19, down 5% as against 51.9 MnT in Q1 FY19. On yearly basis, the production volume increased 4% as against 47.5 MnT in Q2 FY18.

Shipments to Non-Chinese markets increased 8% Q-o-Q

The Company accounted for 10% of total Q2FY’19 shipments to non Chinese markets at around 4.3 MnT. The shipments have dropped against last quarter at 4 MnT.

Average price in Q2FY19 increased 7% Q-o-Q

The Average price realisation for the quarter ending Dec’18 witnessed at USD 48/dmt, up 7% Q-o-Q against USD 45/dmt in Q1FY19.

Recent Updates

* FY’19 guidance: FMG FY’19 shipment guidance unchanged at 165-173 MnT. The shipment for second half of FY19 is expected to be more than H1FY19.

*Fe 60.1% grade ore shipment: The Company has initiated shipment of Fe 60.1% grade west Pilbara fines and recorded first cargo shipped to China in Dec’18. The 60.1% grade shipment is expected to reach 8-10 MnT in FY19 and 40 MnT p.a from Dec’20.

*Eliwana mine and rail project: The project is progressing on schedule and ore is expected to be delivered in Dec 2020. The project is expected to support West Pilbara Fines production of 40 MnT p.a.

*Autonomous Haulage (AHS): FMG focuses on driverless trucks to cut costs. The company is heading towards conversion of over 100 trucks to AHS at Chichester Hub, with 44 trucks already put to operation.

 

Has India’s Graphite Electrodes Import from China Increased Post Removal of Anti-Dumping Duty?

Earlier in 2015, the Finance Ministry of India had imposed anti-dumping duty on graphite electrodes imports from China for a period of five years. The key objective of the government behind this move was to defend the domestic industry from low-cost shipments of GE, especially coming from China and the petition for the same was filed by the Indian manufacturers HEG Ltd and Graphite India.

However, when in the latter half of 2017, electrode demand and prices in China rose dramatically amid its structural side reforms and promotion of electric furnaces, the GE manufacturers across the globe including those in India also took advantage of the situation by raising electrodes prices significantly and exporting more to the overseas market.

Now the exponentially high GE prices and lesser domestic availability of especially lower grade (RP, HP) electrodes due to anti-dumping duty led to acute shortage of graphite electrodes in Indian market creating major problem for the EAF steel manufactures in the country.

To get relief from this problem Alloy Steel Producers Association of India (ASPA) requested the DGAD (Directorate General of Anti-Dumping Duty), which comes under Ministry of Commerce, for initiation of a mid-term review of the anti-dumping duties imposed on the imports of Graphite Electrode originating in or exported from China. Such a review is undertaken only if a reasonable period of time has elapsed since the imposition of the definitive anti-dumping duty.

Subsequently upon its review, in Aug’18 DGAD announced the removal of anti-dumping duty on graphite electrodes imports into India stating a reason that given the rise in global GE prices, imports are no longer threat to the Indian market.

Subsequently after the removal of anti-dumping duty the big question that is hovering is whether Chinese GE have once again started making their way into India. This can be analysed by studying India’s GE import trend in past two years.

How much GE India imported from China in 2018?

As per India’s customs data, although the quantity of GE imported into the country is not very high, a surge of 84% y-o-y basis have been recorded as the same has increased from 3,181 tonnes during Jan-Nov’17 to 5,838 tonnes in Jan-Nov’18.

Out of the total imports of 5,838 tonnes during Jan-Nov’18, highest imports have been recorded from China at 3,604 tonnes followed by Malaysia at 1,846 tonnes. Whereas, in the corresponding period of 2017, imports from China stood at only 414 tonnes and the highest imports came from Malaysia at 1,456 tonnes.

This means that removal of anti-dumping duty on GE imports by India have resulted in a higher quantity of Chinese GE entering into the country.

According to the market sources, although Indian manufacturers are quite capable to producing higher grade electrodes, many EAF steel manufacturers in India require lower grade GE that are not manufactured here and thus they import the same from China. Moreover, chances are high that this may increase in the coming months of 2019.

 
Japan Coal Imports

Japanese Coal Imports Fell to a 6-Year Low in CY18

Japan has recorded its lowest coal imports in the past 6 years, as per the data provided by customs. The country has imported 196.33 MnT coal in CY18, down 1% Y-o-Y from 199.31 MnT in CY17.

Imports during Dec’18 had dropped 9% M-o-M to 16.37 MnT, which was also 15% lower on the year from 19.25 MnT in Dec’17.

Japan’s coal demand has been hit by the emergence of alternative fuels for power generation, while a rise in nuclear power output resulting from nuclear restarts had reduced import of fossil fuels-including oil and gas.

Media reports have claimed that Japanese oil imports had fallen to the lowest since at least 1979; besides its liquefied natural gas (LNG) purchases had also dropped in CY18.

A grade-wise break-up of Japanese coal imports indicate that intake of non-coking coal had decreased 2% Y-o-Y to 130.98 MnT in CY18 against 133.8 MnT in CY17.

Anthracite and Pet coke imports had also dropped on the year recorded at 6.09 MnT and 5.23 MnT in CY18.

However, Import of coking coal had increased along with Met coke, supported by an elevated demand for steel in the domestic construction sector.

Grade CY18 CY17 % Change
Non Coking Coal 130.98 133.8 -2%
Coking Coal 43.4 42.01 3%
Anthracite 6.09 6.41 -5%
Pet Coke 5.23 5.27 -1%
Met Coke 1.7 1.15 48%
Others 8.93 10.66 -16%
Grand Total 196.33 199.31 -1%

Source: Japanese customs
Quantity in MnT

Major Coal Exporters:
Australia continued to have a lion’s share, but had witness decline in coal volume supplied to Japan in CY18. The country’s export was down 3% Y-o-Y to 116.11 MnT in CY18 against 119.13 MnT in CY17.

Indonesian coal export to Japan extended its fall in CY18, as it decreased 10% Y-o-Y to 28.87 MnT compared with 32.08 MnT in CY17.

Russia was the third largest exporter. Coal supplies from the country rose 3% on the year to 18.19 MnT in CY18.

US coal supplies to Japan had witnessed significant growth during the year, rising 28% Y-o-Y to 15.48 MnT in CY18.

China, Colombia, Vietnam, Mozambique and South Korea were among the other major coal exporters in CY18.

Japan country-wise Coal Imports