Asia Cut Coal Imports From South Africa as Trader

Asian coal import from South Africa dropped while European purchases climbed from a month earlier, a trader said. Supplies to Asia from South Africa declined by 1 percent in August to 4.47 million metric tons from 4.52 million in July, said mjunction Services Ltd., a web-based trader backed by Tata Steel Ltd. and Steel Authority of India Ltd. Japan and South Korea boosted purchases while India and China imported less, the Kolkata-based company said.

The worst floods in China since 1998 have boosted hydropower generation, reducing dependence on coal-fired power plants to meet peak summer demand. Imports of coal and iron ore by Indian ports typically decline during the monsoon months from July to September.

Europe?s coal imports from South Africa climbed 63 percent in August to 620,000 tons from July, mjunction said. The continent brought in 5.8 million tons this year until August.

Prices for coal shipped from South Africa?s Richards Bay Coal Terminal fell by about 3 percent to $85.56 in the week to Sept. 10, according to IHS McCloskey, the lowest level in five months.

Continent?s biggest export harbor for the fuel, shipped 5.45 million tons of coal in August, 2.5 percent less than a year earlier, according to a statement on RBCT website.

Purchases by Asia in the first eight months of this year totaled 29 million tons as Asian economies rebounded from a global recession, the trader said in a note.