Richards Bay Coal Terminal sees coal exports decline in 2020 for third straight year

London — South Africa's Richards Bay Coal Terminal exported 70.2 million mt of coal in 2020, down 2 million mt on the year, a third straight year of declines, the terminal announced Jan. 28.

Despite the decline in volume, which could somewhat be excused owing to the significant drop in seaborne demand following the coronavirus pandemic in 2020, the terminal – which handles roughly 95% of all South African coal exports - said it would keep its export target for 2021 at 77 million mt, 500,000 mt higher than the record set in 2017.

The reasoning behind this optimism could likely be the strong demand for South African coal exhibited by Asian Markets.

Asia accounted for the vast majority of exports from the terminal last year, at around 92%. In Asia, India is by some margin the largest single market for South African coal, taking roughly half of all exports, while Pakistan is also a major export destination for South African coal.

While these two key markets will likely remain the biggest buyers of coal leaving the terminal in 2021, the terminal did make not of a more recent development where coal leaving the terminal had been sold to China.

"I understand there have been some vessels that have gone in January to China and it does seem that it is an opportunity for South African coal," a spokesman for the terminal said.

While volume sold to China wasn't particularly large, estimated at around 4-5 Capesize vessels by Platts market sources, the trade flow was welcomed by the terminal as it was the first of its kind since 2014, the terminal said.

Regarding changes in South Africa's thermal coal mining landscape, where several of RBCT's shareholders are either divesting their thermal coal operations or selling to new buyers, the terminal said it wasn't expecting nay disruption to its business.

"We don't anticipate any changes or challenges to the RBCT structure in terms of the way the organisation works. All of those transactions are dealt with in terms of our shareholders' agreement," the terminal said.