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Friday, 24 July 09
S.AFRICA JAN-JUNE EXPORTS TO ASIA AROUND 1.4 MLN T


* China takes 140-150,000 tonnes
* S.Korea imports zero
* Hong Kong utilites buy S.African coal


South African coal exports to Asia excluding India and Pakistan in January-June were around 1.4 million tonnes, a slight rise from 2008's levels, industry sources said on Friday.

China's imports of thermal coal have soared this year, making China, the world's largest coal producer, a net importer since February.

Almost all China's coal imports have come from Indonesia, but a growing tonnage is being shipped from Russia.

The Asian market as a whole is extremely price-sensitive, producers and traders said. It is rare for South African coal to be price-competitive enough to be sold to Asia.

This is in sharp contrast to the Indian market, where South African is increasingly becoming the preferred material and imports have soared.

South Africa's total exports in this period were around 28 million tonnes.

"Last year there was South African coal going into Korea, but not this year," one source said.

China took 140,000-150,000 tonnes during this period, amounting to a couple of cargoes, they said.

Hong-based utilities such as China Light and Power and Hong Kong Electric have also bought South African coal this year, the sources said.

These utilities have not taken coal from South Africa for several years.

South Korean utilites had not brought in any South African coal so far this year, they said.

On an annualised basis, Asian demand for South African coal is likely to be around 3 million tonnes in 2009, up from around 2 million last year..

China mines more than enough coal to meet its needs but it has been cheaper and easier to use imported coal in coastal power plants than domestic material.

China produced 2.7 billion tonnes of coal in 2008, according to the China Coal Industry Association

China's coal imports hit a record 16.07 million tonnes in June, up 17 pct from May, almost all of which came from Indonesia.

Russian coal exporters have also targeted China this year and have diverted as much tonnage as they could, given rail and port constraints, to their Pacific ports.

A lack of demand in Europe and mounting stocks in Amsterdam-Rotterdam have compelled Russian sellers to look increasingly to the Asian market to place their output.

Anywhere between 5-10 million tonnes of Russian coal is likely to be sold into Asia this year, if demand there remains strong, Russian industry sources said.

Source: Reuters



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