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Thursday, 05 March 20
COAL IMPORTS DOWN IN MAJOR ASIAN MARKETS, AND CORONAVIRUS NOT THE DRIVING FORCE - CLYDE RUSSELL
ReutersAsia’s seaborne coal markets stumbled in February and it appears the coronavirus outbreak in China may dodge most of the blame, with the weakness concentrated in other major importers of the polluting fuel.
 
South Korea’s imports of both thermal and coking coal were particularly hard hit, dropping to 6.9 million tonnes in February from 11.4 million in January and 9.4 million in February 2019, according to vessel-tracking and port data compiled by Refinitiv. That was the lowest monthly import figure for South Korea since Refinitiv started vessel-tracking in January 2015.
 
South Korea’s weak coal demand was sparked by the country’s decision to close up to 15 coal-fired power plants between December and February in order to limit air pollution over winter. The bad news for coal exporters is that South Korea will extend the closure of coal-fired plants this month, with the Energy Ministry saying on March 1 that up to 28 plants will be idled this month.
 
India’s coal imports also slipped in February, with Refinitiv data showing a total of 16.4 million tonnes of both thermal and coking coal arriving, down from 18.2 million in January.
 
India, the world’s second-biggest coal importer behind China, is struggling with softer economic growth, which is curtailing electricity demand. In addition, some coastal power plants that rely on imported coal are struggling to sell electricity at prices high enough to make running the generators financially viable.
 
A warmer-than-usual winter, ongoing economic struggles and low prices for spot liquefied natural gas (LNG) are the most likely reason for Japan’s lower coal imports. Refinitiv data showed the world’s third-largest coal importer brought in 13.3 million tonnes in February, down from January’s 16 million and 13.8 million in February 2019.
- Clyde Russell -


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