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Monday, 17 May 10
S. AFRICA CUTS EUROPE COAL SUPPLY, ASIA SALES RISE, TRADER SAYS - BLOOMBERG


Bloomberg reported that, South Africa’s Richards Bay Coal Terminal, Europe’s biggest source of the fuel burned for power, cut shipments to the Atlantic region by more than 43 percent in April and increased sales to Asia by 16 percent, a trader said.

Atlantic sales fell to 1.02 million metric tons from 1.8 million a year earlier, according to two research notes by mjunction Services Ltd., a Web-based trader backed by India’s biggest steel producers. Exports to Asia climbed to 2.89 million tons from 2.5 million tons, the trader based in Kolkata in India said in the notes dated April 10 and April 12.

South Africa is boosting Asian exports as economies in India and China recover from last year’s slowdown while demand in Europe falls amid concern Greece’s sovereign-debt crisis will spread. India and China, whose economies are growing at rates faster than 8 percent, together accounted for about 42 percent of Richard Bay’s shipments in the first quarter of this year compared with about 25 percent a year earlier.

Coal exports from Africa’s largest export terminal for the fuel fell about 14 percent to a 11-month low of 3.92 million tons in April, after rising 17 percent in March to 5.66 million tons, according to data on its website.

The terminal’s stockpiles were at 4.62 million tons as of April 30 as it shipped about 70 percent of 5.6 million tons it received from mines, according to the port data.

At the current shipment rate, the terminal will export 56.8 million tons of coal for all of 2010, compared with its capacity of 91 million tons.

European Demand
Richards Bay is owned by South Africa’s largest exporters of the fuel, including BHP Billiton Ltd., Anglo American Plc and Xstrata Plc. The 27-member European Union burns the fuel for about 30 percent of its power, according to Brussels-based lobby group Euracoal. To Read More
Bloomberg ( By Dinakar Sethuraman)



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