Turkey: Coal Imports Down 8% M-o-M in Nov'18

Turkish coal imports have extended its fall in Nov'18, driven by the decline in coal supplies from Russia. Data provided by customs shows that Turkey's coal imports had decreased to 3.74 MnT coal in Nov'18 against 4.08 MnT in Oct'18, which was also 18% lower on the year from 4.58 MnT in Nov'17.

Coal import by the country has been greatly impacted by geopolitical factors in CY18, particularly during the second half of the year.

During the six months of 2018, there were expectations that the environmental ministry would be raising the maximum sulfur cap allowed for power generators, which had many expecting import volumes to swing toward high-sulfur US coal, supplanting coal from Colombia, which is the traditional origin for Turkish buyers.

The remainder of the year was decidedly bearish as the re-election of President Erdogan, import tariffs and a depreciating Turkish lira against the US dollar all weakened the market.

Contrarily, Turkish coal imports from Colombia have increased 10% Y-o-Y to 17.36 MnT during the first 11 months period of CY18 (Jan’18-Nov’18). However, total imports in the 11-month period have remained almost stable y-o-y marked at 40.4 MnT compared with 40.04 MnT recorded in the same period of CY17.

Grade-wise Coal Imports:

Imports of both Coking and non-coking coal had fell on the monthly basis in Nov'18.

Non-coking coal imports had decreased 10% M-o-M to 2.72 MnT in Nov’18, while coking coal imports were down 19% M-o-M to 0.48 MnT.

There was a considerable growth in Anthracite coal imports, which along with Pet coke imports had witness growth on the monthly basis in Nov'18.

Met Coke import was marked 25% lower on the month at 0.03 MnT in Nov'18.

Major Coal Exporters in Nov'18:

Colombian coal export to Turkey increased 8% M-o-M to 1.71 MnT in Nov'18 compared with 1.59 MnT in Oct'18, but was 8% lower on the year from 1.86 MnT in Nov'17.

Russian coal exports had declined 21% M-o-M to 0.84 MnT in Nov'18, which was also the lowest total in the past 9-months. On the yearly basis, exports had fell 47% from 1.59 MnT in Nov'17.

US coal exports rebounded after falling in Oct'18, were marked at 0.56 MnT in Nov'18.

South Korea, Australia and Iran were the other major exporters in Nov'18, notably all of them had recorded fall in coal supplies to Turkey during the month.