UK imports of thermal coal fell to 239,663 mt in May, down 34% from April to a four month low, the latest customs data showed.
Total imports over the month were down 7% on the year, according to S&P Global Platts historical data, although the origination of cargoes had diversified towards more non-traditional suppliers.
Although Russia retained its status as the largest supplier into the country, sending 127,769 mt of both bituminous and sub-bituminous coal in May -- up 24% on the month -- volumes from Colombia and the US fell to zero for the first time in three months.
Imports from Kazakhstan and the Irish Republic totaling 62,392 mt went some way to covering the shortfall, but 49,5000 mt came from South Africa for the first time in four months, the data showed.
South African Richards Bay FOB 6,000 kcal/kg NAR prices over the period pricing for May-loading (assessment dates March 17-May 24) had averaged around $74/mt FOB according to Platts data, with freight into northwest Europe from Richards Bay averaging around $8/mt, giving a calculated delivered price of $82/mt.
By comparison, the CIF ARA 6,000 NAR kcal/kg price for May-delivery had averaged just $74/mt, effectively closing the arbitrage for this material into the UK.
Over January-May, total accumulated volume of thermal coal imports into the UK was 1.8 million mt, down 10% on the same period in 2016, as shipments remained low since the country doubled it's Carbon Price Support mechanism in April 2015, reducing coal's competitiveness.
Coal had comprised only around 2% of the UK's total energy mix in May, at just 0.48 TWh, according to Platts data, which appeared steady into June based on preliminary figures.
Although this was behind renewable generation that totaled 3.7 TWh, coal had taken a slightly higher share of the electric power generation mix in May versus renewable than seen in previous months as wind and hydro both posted slight reductions over the month, while total power demand increased slightly.
