In a dynamic shift, Australia’s export shipments of coking coal experienced a significant downturn in July 2024. Export volumes plummeted by 17.2% from June, culminating in 11.94 million metric tons. When juxtaposed with July 2023, there was a modest 1% decline. This fluctuation is attributed to varying market demands across key Asian economies.
The most notable decrease was in shipments to India, which fell by 33% month-on-month, reaching 2.34 million metric tons. Similarly, exports to Japan saw a near 2% reduction to 2.59 million metric tons. These figures underscore the volatility in demand from two of the largest consumers of Australian coking coal, reflecting broader market dynamics and potential shifts in their industrial activities.
Conversely, South Korea emerged as a bright spot in the export landscape, with a 23% increase in imports from Australia, totaling 1.59 million metric tons in July. This surge indicates a robust demand within South Korea, potentially driven by its steel manufacturing sector ramping up production.
China, another crucial market for Australian coking coal, recorded a 27% decrease in imports to 1.16 million metric tons. This decline, alongside a dramatic 61.5% reduction in exports to Vietnam to 0.25 million metric tons, highlights the nuanced shifts in regional demand. These reductions are partly due to high stock levels at Chinese ports, allowing for a temporary scaling back of imports.
The average price for Australian premium coking coal, known as hard coking coal, also saw a decrease in July. Prices dropped by 4% from June, settling at $260 per metric ton CFR India. The initial price increase earlier in the month was attributed to an incident at an Anglo American mine, which momentarily disrupted supply. However, the subsequent price decline was driven by a mismatch between supply and demand in major importing countries.
