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Thursday, 11 February 10
SOUTH AFRICA COAL EXPORTS DROP TO INDIA, CHINA


South African coal exports to India from Richards Bay Coal Terminal fell 39% in January from December's levels while shipments to China dropped 55% after China's end-2009 buying spree, exporters said on Wednesday.

China's buying at the end of last year was unusual, prompted by severe weather and disruption of domestic supply but the fall in Indian imports should not be read as a drop in demand which remains strong, exporters said.

"The Chinese were out in force in December when a large volume of South African coal was snapped up by the Chinese," one major exporter said.

"The interest is still there but with the Chinese market it's all a question of price and the New Year next week has made them back off slightly," another seller said.

"The Chinese interest is still there for SA coal, but with the Chinese market it's all a question of price and the New Year next week has made them back off slightly" - Exporter

The Indian exports drop appears disproportionately steep because exporters rush to boost exports in December and draw down stocks at RBCT as far as possible, exporters said.

"The results of pushing hard at year end 2009 was less coal for spot January sales and the markets which traditionally buy more spot coal, such as China and India, were short South African supply in January," the first exporter said.

South Africa exported a total of 5,5-million tons in December, which fell slightly to 4,9- million in January.

Exporters each year rush to maximise their December exports in order to use up their export allocation at RBCT.

South Africa exported around 60-million tons in total in 2009.
Source: Reuters / Mining Weekly



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