South Africa's coal exports in April dropped nearly 14% compared with the previous year despite a moderate rise on a month-on-month basis, amid frequent railway accidents, which would cast a lingering shadow over subsequent export operations.

 

 

In April, South Africa exported 6.22 million tonnes of coal, down 13.93% from 7.23 million tonnes a year ago, customs data showed. It was 0.42% higher than 6.19 million tonnes exported a month ago.

 

On April 2, a coal train derailed on the country's main coal export line, which is never new to local suppliers. In Mid-January, two trains collided on a key line toward the Richards Bay Coal Terminal, which brought railings to the Africa's biggest coal port to a three-decade low. While market participants deemed minor impact on coal exports, shipments to the port were firmly affected.

 

Following the derailment, coal shipments toward RBCT quickly declined, leading to inventories at RBCT tumbling 10% week on week in the week up to April 14, reaching around 2.4 million tonnes, while the weekly average inventories were 2.7 million tonnes since this year.

 

RBCT exported 5.61 million tonnes of coal in April, down 8.1% on the year but up 5.21% on the month. Its share of the country's total coal exports climbed to 90% in April from 86% the previous month.

 

Stockpiles at RBCT buffered the derailment's impact on its exports. After the railway was restored, railings rebounded swiftly. In the week up to April 14, shipments through the Northern Corridor into RBCT climbed to 946,000 tonnes, compared with 463,000 tonnes a week ago.

 

South Africa's coal exports totaled 23.76 million tonnes over January-April, a 3.38% decrease year on year. Among them, coal exports from RBCT reached 21 million tonnes, up 2.12% from a year ago.

 

 

In April, the country's bituminous coal exports stood at 5.82 million tonnes, declining 6.1% year on year but rising 6.15% month on month, representing 93.5% of the country's total coal exports.

 

Exports of other coal stood at 349,900 tonnes or 5.63% of the total, down 63.9% year on year and 38.78% month on month. And anthracite exports were 53,900 tonnes, decreasing 15.27% on the year and 62.45% on the month.

 

The exports of thermal coal (bituminous coal and other coal) reached 6.17 million tonnes in the month, decreasing 13.92% from a year ago but rising 1.91% from a month earlier, accounting for 99.1% of the total.

 

In April, the top five destinations for South African coal were India, South Korea, Pakistan, Japan and China's Taiwan, collectively accounting for 79.16% of the total against 73% in the previous month. India and South Korea together received 60% of South Africa's coal exports that month.

 

 

The country's coal deliveries to the top ten buyers made up 92.45% of the total, higher than 85.42% in March. Among the top 10, only two were European countries.

 

In April, India remained the top buyer, receiving 2.95 million tonnes of coal, decreasing 19.21% from the year ago but ticking up 16.46% from the previous month. That accounted for 47.36% of South Africa's total exports, higher than 40.83% in March.

 

Exports to South Korea were 861,500 tonnes, skyrocketing 84.6% month on month, while South Africa exported zero tonne of coal to the Eastern Asian country a year ago. South Africa delivered 394,700 tonnes of coal to Pakistan in April, up 2.7 times from 2023 but down 3.06% from March.

 

Coal exports to Japan stood at 366,000 tonnes, climbing 19.21% year on year and 2.4 times month on month. Exports to China's Taiwan were 355,800 tonnes, surging 69.97% year on year and 111.5% month on month.

 

Coal exports to the EU dropped 58.32% year on year and 14.56% month on month to 468,800 tonnes in April. South Africa delivered the most of coal to Switzerland, with the volume declining 22.94% on the year and 22.41% on the month to 179,200 tonnes. Coal exports to the Netherlands reached 152,100 tonnes, dropping 55.46% from the year prior yet skyrocketing 176.6% from the month prior.

 

Transnet, South Africa's national transportation company, reported a coal train derailment in the northern region of KwaZulu-Natal on May 18, leading to a closure of both rail lines operating on the Northern Corridor toward RBCT. Coal miners said the event had paralyzed coal shipments for at least five days.

 

Besides, a cable theft on May 22 deteriorated rail transport operation. Some suppliers had to put off cargo deliveries, exerting pressure on the port's coal exports.