<article><p class="lead">South Korean thermal coal imports spiked to an all-time high in July amid surging overall power demand and nuclear outages.</p><p>South Korean thermal coal imports rose by 2.3mn t or 25pc on the year to more than 11.6mn t in July, according to customs data released today, narrowly surpassing the previous high recorded in September 2017.</p><p>The surge in imports came amid a <a href="https://direct.argusmedia.com/newsandanalysis/article/2242840">spike in coal-fired generation last month</a> as seasonal power demand surged on hot weather while nuclear outages raised reliance on fossil fuels.</p><p>Daily mean temperatures in Seoul averaged 28.4°C last month, making it the hottest July for at least 11 years, with daily peak power demand rising by 18pc on the year to a likely record-high average of 81.2GW.</p><p>At the same time, nuclear availability fell by 1.7GW on the year to 16.2GW, compounding the country's reliance on fossil fuels to meet electricity demand. The 1.4GW Shin Kori 4 reactor was unavailable for most of the month because of an outage, while four other reactors were off line for the whole month for planned maintenance.</p><p>Generation from coal and gas rose strongly on the year in July to meet the spike in demand, with South Korean LNG imports climbing by 71pc to more than 4mn t and outpacing the 25pc growth in seaborne coal receipts.</p><p>Power-sector fossil fuel demand is set to remain firm this month as well. South Korea's official weather office sees a 40-60pc chance of above-average temperatures through the remainder of the month and only a 10-20pc chance of unseasonably cool conditions.</p><h3>Record imports from Australia</h3><p class="lead">The rise in South Korean imports in July was driven solely by Australia, as receipts from other key origins all slipped on the year.</p><p>The country received 3.9mn t more Australian coal than a year earlier and 6.3mn t in total, which was probably a record high and surpassed the previous peak of 5.1mn t recorded in December 2015.</p><p>The increase offset declines from Russia, Indonesia and the Americas, which fell by a combined 1.4mn t on the year to 5mn t.</p><p>In the January-July period, South Korean imports were up nearly 1mn t on the previous year at 55.9mn t, but still down from 62.2mn t in 2019. Receipts from Australia were up by 8.6mn t, with Indonesian and Russian supply down by 3.8mn t and 1mn t, respectively, and Americas inflows were flat.</p><p>The customs data pegged the average value of South Korean bituminous coal imports — 106mn t of the total receipt — at an average of $93.26/t, which was nearly 60pc higher than a year earlier. The value of South Korean LNG imports rose by around a third on the year to around $9.56/mn Btu.</p><p class="bylines">By Jake Horslen</p><p><div class="picture"><div><span class="pic_title">South Korean thermal coal imports</span> <span class="units">mn t</span></div><img src="https://argus-public-assets.s3.amazonaws.com/2021/08/11/imports11082021014801.jpg"></div><p><div class="picture"><div><span class="pic_title">South Korean Jan-Jul thermal coal imports</span> <span class="units">mn t</span></div><img src="https://argus-public-assets.s3.amazonaws.com/2021/08/11/ytdimports11082021014849.jpg"></div></article>
