Аccording to preliminary data, Russian coal companies increased shipments to South Korea to 26.5 mio t (+4.6 mio t or +21% y-o-y), while total supplies from Australia, on the contrary, dropped 25% to 46 mio t (-15 mio t y-o-y).
In 2022, Russian exporters boosted coal supplies to South Korea. The growth in export volumes was facilitated by the provision of substantial discounts, as well as lower freight rates. In addition, the short delivery time from the Far East remains as an advantage of imports from Russia attracting the Asia-Pacific consumers. Although, the growth was secured by shipments through the northwestern and southern ports of Russia amid limited capacity of the Eastern range.
Despite Western sanctions, buyers from South Korea began to ramp-up imports from Russia from mid-2022 to 2 mio t of thermal coal per month.
For South Korean consumers, who are ready to start buying the material for Q2 2023, Russian exporters continue to offer high-CV coal with discounts.
Currently, the share of coal generation in the energy balance of South Korea amounts to around 40%.