World’s coal seaborne trade increased by 3.7% in 2018, because of higher input in India, Indonesia and Russia according to Germany’s Verein der Kohlenimporteure (VDKI) coal importers, as stated by Reuters. Imports and exports rose to 1.202 billion tonnes from 1.159 billion tonnes in 2017, VDKI Managing Director, Franz-Josef Wodopia, noted.
Specifically, from the overall result, trade in steam coal that was used in power stations increased by 920 million tonnes.
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Moreover, trade in coking coal which is used for steelmaking, experienced an increase of 4.4% to 281 million tonnes.
Global demand began from India, as the start up of new power plants pushed the imports to more than 200 million tonnes, that were delivered from Australia and Indonesia.
Additionally, China and South Asia were also demand centres that had deliveries from Australia and Indonesia, but also by South Africa, Russia, the United States and Colombia.
As China is being the world’s leading producer, it is for the time being applying restrictions to imports in order to serve its own power sector. According to Wodopia, it is unclear when the limitations will be relaxed.
China’s domestic coal production reflects how much coal the country needs to import, which affects the global trade balance.
Moreover, Wodopia stated that China is to include 10% of gas by 2020 in its energy mix. Yet, this could also lead to China restricting its imports.
However, this policy could also boost LNG shipments to China.
As Wodopia noted
The long-term price forecast is therefore: coal rather weak, gas firm.
