June 11, 2020 Read More →

Australian coal exports to South Korea plunged by double digits in Q1

Stockhead:

Australian thermal coal exports to South Korea were down 21 per cent in the first quarter of 2020 and there are signs that this will be a continuing trend.

The recently elected South Korean government came to power pledging to reach net zero emissions by 2050, end financing of overseas coal plants, and introduce a carbon tax.

It has now just unveiled a $US62bn “New Deal” that consists of a “Digital New Deal” and the first stages of its “Green New Deal”. 

The Institute for Energy Economics and Financial Analysis (IEEFA), a pro-renewable think tank, added that the impact of the COVID-19 pandemic on Australian coal mines was giving the sector an early look into the long-term, permanent decline that is coming.

It noted that power sector planners in Indonesia, Vietnam, and the Philippines are all cutting demand forecasts.

Separately, the US Energy Information Administration (EIA) has further lowered its coal production forecasts for 2020, predicting a 25 per cent drop in US coal production from 2019 levels.

It also forecast that thermal coal exports are expected to drop 30.2 per cent to 26.3 million tonnes.

The EIA had previously noted that the US is on track to produce more energy from renewables than coal for the first time on record.

[Bevis Yeo]

More: Korean imports of Australian coal have dived and the outlook is not positive

Posted in: IEEFA In the News

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