China's Coal Exports Fall In September

China Securities Journal quoted statistics from China Customs showed that China exported 2.02 million tonnes of coal in September down by 2.9%YoY compared with the 2.08 million tonnes in last September, the lowest drop in this year. Average monthly exports fall exceeded 50% in the first eight months.

September eyed the fourth consecutive month on month rise in coal exports, after a bottom level of 1.14 million tonnes in this June. Analysts attribute this to coal consumption peak during summer in the northern hemisphere. Reviving worldwide economy also pulls up coal demand.

International price also climbs. Globalcoal statistics indicate thermal coal price rose 5.6% from September 28th to USD 71.88 per tonne FOB on October 9th at Newcastle Port and price for South African coal gained 7.29% to USD 64.43 per tonne. Spot price for coking coal in international market has jumped to USD 170 per tonne from USD 120 per tonne in April.

Datong Securities points out northern hemisphere observes thermal coal consumption peak recently and demand swells while coking coal demand also waxes as steel capacity utilization rate keeps rising. Global crude steel output has been increasing since this April with capacity utilization rate ascending by 18% from this January to 88% in August.

However, China's accumulative coal exports during January to September still fell 53% over last year to 16.85 million tonnes. But coal imports in the first eight months surged 160% to 73.83 million tonnes, implying net imports of 59 million tonnes. On the other hand, coke exports remain sluggish. China exported only 360,000 tonnes of coke and semi-coke during January to September a slump of 97%YoY. Coke exports recorded merely 40,000 tonnes in September.

China Customs forecast coke demand will shrink along with weak steel market and steel output reductions worldwide. Eurofer has predicted a 33% steel consumption drop in this year compared with 2008. Major coke importing countries, such as Brazil and India, are inclined to absorb overseas coking coal to yield coke as their coke production facilities improve, leading to falling dependence on Chinese coke.

Source: Steel Guru