Monthly Archives: September 2019

India: Silico Manganese Prices down by INR 500/MT W-o-W

Indian Silico Manganese prices have been falling continuously in line with the down-trending steel market. Moreover, the inventories with producers are increasing; thus, the producers are experiencing selling pressure and the prices are continuously falling down. Offers are now below the Production cost and many producers are going for production cuts in the Eastern region of the country. Producers in the Durgapur area have lowered their production in line with the 9 days festive season that has kicked in. Producers are however pessimistic about any rise in the prices taking into consideration the sluggish Steel market. The export market also remained dull with very limited quantity being traded. Manganese Ore prices are also falling aggressively in the global market as there is limited buying interest. Manganese Alloy producers in China are sitting on huge inventories and are less interested in buying material before the national holidays.

In Durgapur, Silico Manganese 60-14 is being offered in the range of INR 59,500-60,000/MT Ex-Durgapur. In Raipur, the prices are at INR 59,000-59,500/MT Ex- Raipur. In the Export market, the demand is poor amid low buying interest as the buyers have a lot of options in the export market; producers are offering 60-14 grade at USD 840/MT and 65-16 is being offered at USD 935/MT. Meanwhile, a Raipur based producer concluded a deal of 300 MT at INR 59,700/MT last week and are currently offering at INR 59,400/MT Ex-Plant. Another Producer from Raipur concluded a deal of 100 MT for 60-14 grade at INR 59,000/MT on Saturday.

On the future outlook, it may be anticipated that the prices may fall further in line with low demand. However, the producers are waiting for the MOIL prices that are scheduled to be declared tomorrow. It is expected that MOIL would reduce their prices in line with falling Seaborne Manganese Ore prices.

 

India: OMC Iron Ore Lump E-auction Receives Dull Response

Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore lump e-auction today (30th Sep’19). Total quantity put under the auction was 785,000 MT iron ore lumps. Out of the total quantity nearly 23% (183,000 MT) of material fetched bids. The material offered was from Gandhamardan, Daitari, and Koira mines. Traders were restricted to take part in this auction. The auction fetched flat bids except the lot of 10-180 mm offered from Gandhamardhan which received bids higher by INR 200-250/MT.

Out of the total quantity of 180,000MT offered from Koira mines, 114,000 MT received flat bids at INR 3,100/MT.

Lump from Gandhamardan mines received bids for total of 20,000 MT and 49,000 MT was sold from Daitari out of the total 90,000 MT ore offered.

Miner had reduced base prices by INR 250/MT from all its mines against the base price of last e-auction conducted on 2nd Aug’19. Out of the total quantity, 770,000 MT was DR-CLO and remaining 15,000 MT was lump ore.

Bid price comparison of OMC iron ore E-auctions

 Mines  Size  Fe (%) Bid Price as on 02 Aug’19 Base Price as on 30th Sep’19 Bid Price as on 30th Sep’19 Quantity Offered  Quantity sold
(mm) (INR/MT) (INR/MT) (INR/MT) (MT) (MT)
Gandhamardan  10-40  62% 2,850 2,600 2,600 500,000 5,000
 10-180  65% 2,150 1,900 2150/2100 15,000 15,000
 Kurmitar (Koira)  10-40  62% 3,350 3,100 3,100 180,000 114,000
Daitari  10-40  62% 3,250 3,000 3,000 90,000 49,000
 Total 785,000 183,000

Bid prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research

OMC iron ore production for the month of Aug’19 recorded at 30,496 MT, as against 464,693 MT in July’19.

OMC is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.

EC limit at Daitari mines is proposed to be increased to 6 MnT p.a. from current EC of 3 MnT pa. On similar lines, EC limit at OMC’s Kurmitar mines is proposed to be increased from current 2.4 MnT p.a to 6 MnT p.a.

 

SE Asia: Buyers Lower Bid for Imported Scrap Purchase

Imported scrap offers to South East Asia continued the downward trend for another week, as prices moved down by another USD 10/MT on a weekly basis, SteelMint learned from industry participants. Limited deals were reported to conclude on gap between bids and offers, while the market continues to remain cautious.

Indonesia – Offers for imported scrap to Indonesia moved down again last week. P&S scrap offers from most origins stood at USD 270/MT CFR Jakarta, Indonesia, however, Buyer’s bids for the UK, as well as Brazil origin P&S scrap, now stands at USD 260-265/MT CFR Jakarta with limited bookings being reported in the week.

Busheling scrap from the UK, as well as Brazilian suppliers, are being offered at around USD 270-275/MT, down by over USD 10/MT w-o-w. Few offers for Bluesteel stood at around USD 275/MT CFR Jakarta.

Shredded scrap from North America and Europe dropped by another USD 10/MT with offers of USA & UK origin Shredded scrap in containers standing at USD 250/MT, CFR Jakarta while HMS 1&2 (80:20) was being offered at around USD 240/MT, CFR.

Buyers in Indonesia are looking to book from nearby origins like Singapore, Malaysia, Hong Kong on shorter transit time, while few offers from these origins include USD 280/MT for Oversized P&S, USD 260/MT for A Bundles, CFR Jakarta.

Vietnam In line with the global decline, the Vietnamese market also continued to drop last week, with prices falling further all through the week.

Japanese H2 scrap is being offered at around USD 250/MT CFR Vietnam, down USD 5-10/MT against the previous week, while other grades from Japan included HS at USD 285/MT and Shindachi scrap at USD 275/MT CFR Vietnam, in bulk vessels.

Last week, few cargoes from Hong Kong comprising of HMS (50:50) were sold at USD 240/MT to South Vietnam, CFR basis.

 

Daily Update: Indian Steel Market 30 Sep’19

Indian Billet prices slightly fluctuated by INR 100-200/MT today amid average spot trades. While Sponge offers declined by INR 100-200/MT over limited buying activities due to power constraints in central India.

In context to finished steel products, the prices of Rebar, Structure & Wire rod being narrowed down owing to poor off take.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 26,100-29,100/MT (USD 368-411) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 16,500-17,500/MT (USD 233-247); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

— On 30th September 2019 (Monday) INR to USD exchange rate stood at INR 70.80.

— ICEX (Indian Commodity Exchange Ltd) Nov’19 contract for STEELLONG today open at INR 28,650/MT & last traded (IST 18:20 hrs) at INR 28,420/MT.

— BSE Sensex closed at 38,667(-155) on Monday, as against last day (Friday) at 38,822(-167).

— NSE Nifty50 index was closed today at 11,477(-35) & Nifty Metal at 2,438(-15).

Key Trades

— According to the latest assessment of Coking coal, spot prices of the Premium HCC are reported at around USD 137/MT FoB Australia & USD 152.5/MT CNF India.

— South African RB2 (5500 NAR) coal offers are assessed at USD 49.96/MT on FoB basis & USD 66.31/MT CNF India.

— As per latest update received by SteelMint, the fresh deals for sponge iron (79-80 FeM, 95-100% lumps) exports to Bangladesh concluded at near to USD 280-282/MT CFR Chittagong.

— Durgapur based Rashmi Metaliks has offered sponge P-DRI at INR 16,000-16,100/MT, as per sources.

— Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 16,800/MT & Billet at INR 26,100-26,200/MT ex-plant; an official reported. And added trade remain limited.

— BMM Ispat a price trend setter in South Indian sponge market has kept offers unaltered today and offered FeM 80 P-DRI lumps at INR 16,100-16,200/MT ex-Bellary, Karnataka.

— BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 16,600/MT & INR 17,000/MT ex-plant, Karnataka; an official reported.

— Trade discounts in Raipur wire rod is hovering at INR 800-1,000/MT amid unchanged base price at INR 31,500/MT ex-plant. Meanwhile in Durgapur, trade reference prices of wire rod slightly drop by INR 100/MT to INR 30,200-31,000/MT ex-plant.

— Rathi Steels based in North region is current offering their 12 mm Rebar at INR 33,300/MT.

— Raigarh(Chhattisgarh) based Anjani Steels Ltd. (Radhe TMT) offers their 12 mm Rebar at INR 31,500/MT.

— Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) is offering their 12 mm Rebar at INR 31,900/MT FoR.

— Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) has unchanged their 12 mm Rebar offers at INR 31,900/MT.

Reference prices as on 30th September 2019

  Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Alang HMS(80:20) 22,000 21,900 22,100 + 100 21,700 21,100
Ex-Mumbai HMS(80:20) 21,400 21,200 21,500   0 21,200 21,600
Ex-Chennai HMS(80:20) 19,800 19,600 20,000 – 100 20,400 20,400
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 16,950 16,900 17,000 – 150 17,600 18,100
Ex-Rourkela Mix, FeM 80%, +/-1 16,700 16,600 16,800   0 16,900 16,350
Ex-Raipur Mix, FeM 80%, +/-1 17,500 17,400 17,600   0 17,500 17,400
Ex-Bellary Lumps, FeM 80%, +/-1 16,500 16,400 16,600   0 16,700 NA
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 15,950 15,900 16,000 – 150 16,600 17,100
Ex-Raipur Lumps, FeM 80%, +/-1 16,150 16,100 16,200 – 50 16,300 16,050
Ex-Bellary Lumps, FeM 80%, +/-1 16,100 16,000 16,200   0 16,400 NA
Ex-Hyderabad Lumps, FeM 80%, +/-1 16,800 16,700 16,900   0 16,900 16,800
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 28,950 28,900 29,000 – 50 29,000 29,150
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 26,400 26,300 26,500 – 100 27,000 26,700
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 25,800 25,700 25,900   0 26,100 26,000
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 26,200 26,100 26,300   0 26,550 26,300
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 28,100 28,000 28,200 + 100 27,550 NA
Billet Ex-Mandi Gobindgarh 100×100 mm, IS 2831 29,100 29,000 29,200 – 100 29,200 29,300
Ex-Durgapur 100×100 mm, IS 2831 26,700 26,600 26,800 – 100 27,200 27,000
Ex-Rourkela 100×100 mm, IS 2831 26,100 26,000 26,200   0 26,600 26,400
Ex-Raipur 100×100 mm, IS 2831 26,650 26,600 26,700 – 50 26,900 26,900
Ex-Ahmedabad 100×100 mm, IS 2831 28,400 28,300 28,500 – 100 27,600 27,750
Ex-Mumbai 100×100 mm, IS 2831 28,300 28,200 28,400 + 100 27,800 NA
Ex-Chennai 100×100 mm, IS 2831 27,000 26,900 27,100 – 100 27,400 28,000
Ex-Hyderabad 100×100 mm, IS 2831 26,500 26,400 26,600 – 200 27,000 27,000
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 32,300 32,100 32,400 – 200 32,800 32,800
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 30,600 30,400 30,800 – 200 31,300 31,100
Ex-Rourkela 12-25 MM, IS 1786- 500 Fe 30,900 30,800 31,100   0 31,300 30,500
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 30,800 30,700 31,000   0 30,900 30,400
Ex-Jalna 12-25 MM, IS 1786- 500 Fe 31,500 31,300 31,600   0 31,500 31,700
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 31,100 31,000 31,200 + 100 30,500 NA
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 31,500 31,400 31,700 – 100 31,700 32,200
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 30,500 30,400 30,600   0 30,800 31,000
Wire Rod Ex-Durgapur Wire Rod(5.5 MM) 30,400 30,200 31,000 – 100 31,000 30,500
Ex-Raipur Wire Rod(5.5 MM) 30,700 30,500 31,500   0 30,700 30,600

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

 

Steel Giant Arcelor Mittal to shut down some of its South African Steel Plants

ArcelorMittal South Africa, the largest steelmakers in country has announced to shut down some South African steel plants. The company may close some operations pending a review as it looks to strengthen its long-term sustainability and battle cheap imports, rising costs and a flagging local economy.

By actively addressing those operating sites, individual plants and production areas which historically have had a negative impact on the company’s financial results, the board aims to strengthen the financial fundamentals of those business areas, the firm said in a statement.

The company said it had begun consultations with its employees and trade unions on jobs but did not provide further details.

The company supplies more than 60% of South Africa’s steel. The country’s steel consumption was currently at its lowest level in a decade, down 30% from 2007. The company has suffered in a huge operating loss, which lost around ZAR 222 million in the first half of 2019, a dramatic decrease compared with last year’s ZAR 1.22 million operating profit. This plan is being quite supported by the investor and the market which expects to bring back the financial health to the group.

Apart from this, the company is also evaluating a potential sale of some of its iron ore operations in Canada, Brazil and Liberia as the world’s biggest steelmaker seeks to cut debt by divesting non-core businesses. The organisation is in talks with financial advisers about options including selling partial or full stakes in at least some of the assets. European producers have been hit by a slump in demand from the auto industry and competition from cheap imports. That’s also making it hard for them to pass on to customers higher prices for iron ore, a key steelmaking ingredient, that are being stoked by mine closures in Brazil.

ArcelorMittal’s mines and strategic contracts produced 58.5 MnT of iron ore last year. The company’s Canadian business produces more than 26 million tons of iron ore concentrate a year and has annual iron ore production capacity of 7.1 million tons in Brazil. ArcelorMittal has struggled for years with its Nimba iron ore operation in Liberia, halting an expansion plan after Ebola devastated the West African country in 2014.

 

Japan Steel Export Stats: Aug’19

Japan, the world’s third-largest crude steel producer witnessed stability in exports of ferrous scrap and finish flat steel, while exports of semi-finished and finish long steel observed decrease on the monthly basis in Aug’19, the customs data maintained with SteelMint showed.

According to the world steel association, Japan’s crude steel output marked a slight declined in Aug’19 and stood at 8.12 MnT, down 3% M-o-M as compared to 8.39 MnT in July’19, while on a yearly basis the production remained almost stable as against 8.81 MnT in Aug’18.

Ferrous Scrap: Japanese ferrous scrap exports remained unchanged in Aug’19 and were recorded at 0.67 MnT, same as the exports in July’19. On a yearly basis, scrap export has observed marginal decreased by 3% M-o-M from 0.61 MnT reported during the same period a year ago, in July’18.

Country-wise: South Korea remained the largest importer of ferrous scrap from Japan with a share of 11% in total scrap imports from Japan, as it imported 0.29 MnT in Aug’19, remaining almost stable as against 0.28 MnT scrap imported in July’19. Vietnam, with a share of 26% stood at second position with 0.26 MnT of imports in Aug’19, rising by 23% M-o-M. Followed by other prominent importers Taiwan (0.05MnT, down by 50% M-o-M) and Bangladesh (0.02 MnT) with a share of 13% and 14% respectively during the month.

Semi Finish: Japan’s exports for semi finished steel recorded a decrease in Aug’19 as the country exported 0.28 MnT, down 15% M-o-M as against 0.33 MnT exports recorded in July’19. On a yearly basis, the exports dropped by 7% Y-o-Y as against 0.33 MnT registered during the same period a year ago.

Country-wise: Taiwan remains the largest importer of Japanese semi finish products with a 15% share of total semi finish exports by Japan as it imported 0.12 MnT down 8% M-o-M, followed by other prominent importers such as South Korea (0.06 MnT, down 25% M-o-M) and Thailand (0.06 MnT, down 40% M-o-M) with 10% and 16% share respectively.

Finish Flat: Japan’s finish flat steel exports inched up by 1% on a monthly basis to 2.24 MnT in Aug’19 as against 2.23 MnT in the previous month.

Robust demand for steel in Japan’s domestic market kept the steel manufacturers away from booking a significant amount as exports. Meanwhile, increasing demand for finish flat steel in Asian countries supported and absorbed the plunging 41% exports to the USA in Aug’19 amid protective measures under Section 232. As per data maintained with SteelMint, Japan’s finish flat exports to the USA stood at 37,405 MT in Aug’19 as against 63,803 MT in the preceding month.

Finish Long: Japanese exports for finish long steel fell by 5% M-o-M and stood at 0.17 MnT as compared to 0.18 MnT in July’19. On a yearly basis, exports drop by 21% Y-o-Y as against 0.21 MnT during the same period a year ago.

Country Wise: South Korea remained a major importer of finish long steel in Aug’19 as it imports 0.06 MnT down by 14% M-o-M, followed by another importer was Thailand which imported at 0.3 MnT in Aug’19, up by 50 % M-o-M.

Japan Steel Exports Aug’19
Products Aug’19 July’19 % Change M-o-M Aug’18 % Change Y-o-Y
Ferrous Scrap 669,915          665,676 0.6          605,933 10.6
Semi Finish   275,280          331,744 -17          296,533 -7.2
Finish Long   174,660          176,727 -1.2          211,594 -17.5
Finish Flat  2,243,936      2,228,894 0.7      2,309,166 -2.8
Finish Long Stainless Steel 10,032             10,844 -7.5             10,813 -7.2
Finish Flat Stainless Steel 48,081             50,258 -4.3             51,627 -6.9
Graphite Electrode   7,480                5,565 34.4                9,098 -17.8

Quantity in MT
Source- SteelMint Stats & Customs Data

 

India: Steel Mills in Punjab to Get Rebate on Power Tariff

The steel mills in Mandi Gobindgarh, Punjab – northern India, are to get relief during night hours power consumption.

As per conversation with sources, the steel mills in Mandi will get rebate of around INR 1.30/unit on power consumption from 10:00 PM to 6:00 AM, which is applicable from 1st Oct’19.

In general this relief has been provided by state Government during October to March period, which is continued this year too, as stated by sources.

The current industrial power tariff in Mandi is about INR 5.80/unit in which the mills will get rebate of around INR 1.30/unit during night hours power consumption.

Post the reduce night power charges, the average cost of furnaces (Ingot/Billet) manufacturers is likely to reduce by INR 700-900/MT in local market of Mandi Gobindgarh.

The fresh offers in Mandi is hovering at INR 28,900-29,000/MT for MS Ingot, INR 29,100-29,200/MT for Billet, INR 33,400-33,800/MT for 12-25 mm Rebar & INR 19,500/MT for HMS (80:20) scrap, ex-works.

Mandi is one of the major market in India in terms of medium/small scale industries. As per sources near to 200 steel mills are operational in Mandi which produces Semis & Finished steel products and supply largely to northern region including local market.

 

Essar Steel: Iron Ore Sourcing Stable in Aug’19

Essar Steel – an integrated steelmaker with steel making capacity of 10 MnT p.a. recorded stable iron ore sourcing for the month of Aug’19 at 0.90 MnT, in line with July’19 sourcing.

Iron ore procurement from NMDC (C.G.) down 33% M-o-M

Essar Steel procured 0.33 MnT of iron ore in Aug’19 from NMDC’s Bailadila mines in Chhattisgarh via slurry pipeline, down 33% against July’19 procurement by the company at 0.49 MnT.

Amid heavy rains, NMDC iron ore production and dispatches were learned to have remained adversely impacted.

Sourcing from Odisha merchant mines up 42% in Aug’19

Essar Steel sourced 0.55 MnT iron ore in Aug’19 from Odisha’s merchant mines, up 42% against July’19 sourcing at 0.39 MnT. Sourcing from OMC dropped 17% to 13,411 MT in Aug’19 as against 16,230 MT in July’19.

Out of the total iron ore sourced from Odisha merchant mines in Aug’19, largest share contributed by Serajuddin at 0.35 MnT (up 67% M-o-M). According to the market sources, Serajuddin has increased its iron ore production sharply by 38% to 1.5 MnT in Jul’19, reaching over four years high as against 1.09 in Jun’19.

Sourcing from KJS Ahluwalia and KN Ram picked up to 0.16 MnT, and 0.02 MnT respectively. Procurement from MGM Minerals and MG Mohanty witnessed fall to 9,930 MT and 1,953 MT respectively.

Essar Steel imports marked nil in Aug’19

Essar Steel’s iron ore and pellet imports recorded nil for the eighth consecutive month in Aug’19. The imports were last seen in Dec’18 at 0.15 MnT.

The imports have been on the lower side amid soaring iron ore prices. Monthly average global iron ore fines (Fe 62%) prices in Aug’19 witnessed at USD 92/MT, CFR China.

Essar Steel Iron ore Sourcing

 Buyer  August’19  July’19 
 Serajuddin 353,630 211,390
 NMDC 328,200 488,000
 KJS Ahluwalia 156,712 148,359
 KN Ram 22,171
 OMC 13,411 16,230
 MGM Minerals 9,930 26,471
 Indrani Patnaik 9,506 2,000
 MG Mohanty 1,953 2,657
 Grand Total 895,513 895,106

Qty in MT
Provisional data
Source: SteelMint Research, Customs, Odisha govt.

Essar Steel’s long-standing bankruptcy case

The Essar Steel bankruptcy case is kept pending so that the matter can be decided taking into consideration recent amendments to the Insolvency and Bankruptcy code. The operational creditors said they would file petitions challenging the validity of the amendments to the IBC.

Previously, the appellate tribunal (NCLAT) said secured creditors would get only 60.7% of their INR 49,473 crclaims and the rest would be paid to the operational creditors, treating them at par with operational creditors. Following which, the financial lenders (SBI and Axis banks) were mulling various options such as moving to Supreme Court seeking amendment in Insolvency and Bankruptcy code (IBC) due to orders put forwards by NCLAT.

 

Iran: KSC Concludes 30,000 MT Billet Export Deal

Khouzestan Steel Company (KSC) – one of the leading exporters of Iran has concluded a billet export deal of quantity recently. The deal quantity is of 30,000 MT for size 150*150 mm and 130*130 mm for early Nov’19 shipment. As per market sources, the company has concluded the deal to Far East. The deal value was reported to be USD 355/MT, FoB Iran.

SteelMint’s billet export assessment for Iran stands at USD 350-355/MT, FoB Iran.

In last week as well, billet export deals to China from Iran were reported to conclude from the country. Around 45,000 MT billet deal was concluded at USD 395/MT, CFR and 200,000 MT at 385/MT, CFR China. Both the shipments are scheduled for end Oct’19.

As per Financial Tribune, a total of 6.86 MnT of ingot, bloom and billet were produced by the country first four months of the current Persian year (March 21-July 22), up 4% Y-o-Y. As for output during the month ending 22 Jul’19, a total of 1.64 MnT of slab, bloom, billet and ingot were produced to register a 9% Y-o-Y growth.

 
Japan Coal Imports

Japan: Coal Imports Down 14% M-o-M in Aug’19

Japanese coal imports have fallen 14% on the month to 15.95 MnT in Aug’19, weighted down by the hefty coal intake recorded in the previous month. Apparently, import volume of 18.46 MnT in Jul’19 was noted highest over the 2018-19 period.

Besides, a collapse in Australian coal receipts and lower thermal power generation had also slashed Japanese coal imports during the month.

Data provided by Japanese customs indicates that coal imports in Aug’19 were marked 13% lower on the year from 18.37 MnT in Aug’18, thus attaining the largest y-o-y drop for CY19.

Over the course of the first 8 months of CY19 (Jan-Aug’19), Japanese coal imports have reached 127.04 MnT, down 2% Y-o-Y from 130 MnT noted in the same period of CY18.

Grade-wise Coal Imports:

Japan’s non-coking coal imports dropped 16% M-o-M to 10.56 MnT in Aug’19 from 12.58 MnT noted in Jul’19.

Australian Energy and Mineral Resources had highlighted in its report that Japanese thermal coal imports are expected to experience a temporary boost through to early 2020. However, despite the short-term gains, the longer-term trend for imports is likely to drift slightly downwards, driven by ongoing nuclear restarts.

Imports of coking coal had decreased 10% M-o-M to 3.6 MnT in Aug’19 as against 4.01 MnT in Jul’19.

Among the major coal grades, only Anthracite coal intake had gone up during Aug’19, which were marked 48% higher on the month at 0.62 MnT.

Grades Aug’19 Jul’19 % Change
Non Coking Coal 10.56 12.58 -16%
Coking Coal 3.6 4.01 -10%
Anthracite 0.62 0.42 48%
Pet Coke 0.29 0.52 -44%
Met Coke 0.04 0.14 -71%
Others 0.84 0.79 6%
Grand Total 15.95 18.46 -14%

Source: Japanese customs
Quantity in MnT

Major Coal Exporters:

Japan’s largest coal exporter-Australia, witnessed a 16% drop in monthly coal supplies during Aug’19. Australian coal exports fell to 8.99 MnT in Aug’19 as against 10.74 MnT in Jul’19, which were also marked 18% lower on the year from 10.99 MnT in Aug’18.

Indonesian coal exports decreased 13% M-o-M to 2.36 MnT in Aug’19 compared with 2.72 MnT in Jul’19.

Japan’s continued efforts to diversify sources of import, had slashed its coal sourcing from major suppliers Australia and Indonesia, both of which had lost market share to Russia, Canada and the US. Notably, during the first 8-month period of CY19, both Australia and Indonesia have witnessed near about 5% y-o-y decline in coal shipments delivered to Japan.

Russian coal exports to Japan had increased 8% M-o-M to 2 MnT, attaining a 9-month high total in Aug’19. However, supplies from Canada and US were down m-o-m in Aug’19.

Japan Country-wise Coal Imports