South Africa exported 6.48 million mt of thermal coal in May, down 2.8% year on year, due to falling shipments to Europe and Turkey, although exports to India continued to rise, according to customs data released late Monday.
Continuously strong Richards Bay FOB spot prices have been hindering buying interest for South African thermal coal this year, making it uncompetitive against cheaper material from other origins, particularly to Europe and Turkey.
The volume was, however, 5.1% higher than April and its highest since December 2015, with shipments to India at the highest monthly volume since S&P Global Platts records began in April 2014.
The country took 4.46 million mt -- or 68.8% of total exports -- of South African thermal coal during the month, up 5% on-year and 1% higher than April.
Shipments to Europe in May fell 42% on the year and 44% from the previous month to 233,300 mt, the lowest amount since June 2015. There were no exports to the Netherlands, Spain, the UK or Germany, but Italy took 148,300 mt.
Turkey, which started the year as the third largest buyer of South African thermal coal, took none in May compared to 227,100 mt in the same month of 2015 and 61,100 mt in April.
One destination that took more coal in May was Pakistan at 460,000 mt, rising 46% on the year and 39% higher than the previous month.
Exports to the rest of Africa in May increased 13% on the year to 701,042 mt, while shipments to the Arabian Peninsula area jumped 92% from May last year to 350,000 mt.
Platts 7-45 day price assessment fluctuated around the $52-$53/mt FOB level in May, remaining relatively steady from the beginning of the month's $52.30/mt to close at $52.10/mt FOB on May 31.
