Less SA coal goes to Asia, more to EU

150509Suppliers of construction materials into the building industry are taking strain because of the collapse of the residential housing market. Buildmax, which has been repositioned through two major acquisitions as an opencast coal mining contract and supplier of construction materials.photo Supplied

150509Suppliers of construction materials into the building industry are taking strain because of the collapse of the residential housing market. Buildmax, which has been repositioned through two major acquisitions as an opencast coal mining contract and supplier of construction materials.photo Supplied

Published Sep 21, 2012

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London - Asia's share of South African coal exports which totalled 5.9 million tonnes in August fell to 55 percent while the Atlantic market's rose sharply, reflecting increased shipping of cargoes to oversupplied Europe, exporters said.

This year, aside from a briefly open window in July-August, South African coal FOB prices have been uncompetitively high in many markets but particularly Europe.

However, widespread price renegotiations and shipment delays by Chinese trade buyers of many coal origins led sellers of South African to regard Europe as comparatively more attractive a market because of lesser counterparty risk.

The Atlantic market's share of South African coal exports rose to 44 percent of the total shipped from 21 percent in July.

China also saw a fall in South African imports to 855,000 tonnes in August from 2.1 million in July.

India's imports were little changed at 1.6 million tonnes in August compared with 1.7 million in July.

-Reuters

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