South Korea's coal imports declined for the third consecutive month in November, hitting a record low in the past five months.

The country imported 8.96 million tonnes of coal in November, up 0.48% year on year (YoY) from 8.91 million tonnes but down 1.03% month on month (MoM) from 9.05 million tonnes, the latest customs data showed.

As winter fully set in across the Northern Hemisphere, colder weather led to a slight increase in South Korea's thermal coal demand in November, boosting the imports of the fossil fuel.

Nevertheless, above-normal temperatures curbed power demand growth, with November's peak power demand rising significantly compared to October but lower than in 2023.

In November, the operating installed capacity reached 97.5 GW, increasing 14.17% MoM and 1.17% YoY. The power demand peaked at 79 GW, rising 9.4% MoM but declining 4.42% YoY.

Meanwhile, its coal-fired installed capacity was unchanged compared to October at 40.2 GW, while the combined installed capacity of solar and wind power decreased 385 MW from the previous month.

The monthly decline in the country's coal imports in November was mainly driven by a decrease in metallurgical coal intakes, particularly PCI.

POSCO, one of the world's largest steelmakers in South Korea, experienced at least two explosions and fires at its factories in November, causing the suspension of parts of its equipment. In addition, the company halted a wire plant that had operated for over 45 years in late November, which also reduced short-term coal demand for steelmaking.

From December 2024 to February 2025, there is a 70-80% probability that temperatures in the country will remain flat or higher than in previous years, according to the Korea Meteorological Administration. This, coupled with the government's coal-fired power restraint measures to combat air pollution, may put downward pressure on South Korea's thermal coal demand in the coming months.

The imports were worth $1.12 billion in November, down 12.43% YoY and 10.53% MoM. That put the average price of coal imports at $124.82/t, down 12.85% YoY and 9.59% MoM.

Over January-November, coal imports in South Korea totaled 105 million tonnes, down 3.11% from 108.8 million tonnes in the same period a year ago, valuing $15.08 billion, an 18.72% year-on-year decline. The average import price was calculated at $143.1/t, dropping 16.12% YoY.

Breakdown by coal type, thermal coal (other bituminous coal and other coal) imports stood at 6.25 million tonnes in November, climbing 3.96% YoY and 14.89% MoM. The imports accounted for 69.76% of the total, higher than 60.09% in October.

South Korea imported 2.08 million tonnes of coking coal, up 14.5% YoY yet down 5.82% MoM. Coking coal intakes took up 23.19% of the country's total coal imports, lower from 24.36% in the month prior.

Anthracite imports amounted to 262,900 tonnes in November, sliding 39.57% YoY and 34.82% MoM, occupying 2.94% of the total. PCI coal inflows came in at 369,000 tonnes, slumping 43.65% YoY and 63.23% MoM, making up 4.12%.

By origin, Australia, Indonesia, Russia, Colombia and Canada were the top five suppliers to South Korea, accounting for 89.23% of the total coal imports, higher than 88.09% in October.

South Korea still imported most coal from Australia at 2.59 million tonnes in November, down 25.93% YoY and 7.9% MoM. It accounted for 28.94% of the total, lower from 31.1% a month ago.

Indonesia was the second largest supplier, with shipments at 2.54 million tonnes, increasing 28.95% YoY and 30.97% MoM, taking up 28.36% of the total, significantly higher than 21.43% a month earlier.

Russian coal imports totaled 1.23 million tonnes last month, down 23.11% YoY and 24.13% MoM. The import volume represented 13.77% of the total.

Coal imports from Colombia and Canada were 994,700 tonnes (+212.3% YoY, +54.24% MoM) and 631,400 tonnes (-6.77% YoY, -33.42% MoM) in November, respectively.

Additionally, South Korea imported 15,000 tonnes of coke in November, down 22.28% YoY while up 3.06% MoM. The country spent $4.44 million on coke imports, down 33.74% YoY but up 2.73% MoM, with the average import price at $295.54/t, down 14.74% YoY and 0.31% MoM.