Japan increases coking coal imports in September

Japan did not import any Russian coking coal in September, even as overall imports rose on a monthly basis but fell from a year earlier because of subdued demand.

Arrivals to Japan were 5.06mn t in September, up by 8pc on the previous month but down by 14pc from the previous year, according to data from Japan's finance ministry. January-September imports fell by 4pc to 46mn t compared with the same period a year earlier.

Imports from Australia increased by 1pc from a year earlier to 3.16mn t and rose by 37pc from the previous month. Shipments from the US increased by 62pc from a month earlier to 472,020t but fell by 19pc against the previous year. Arrivals from these countries offset the fall in imports from countries like Colombia, New Zealand and Indonesia.

Canadian imports saw an 18pc year-on-year increase to 335,785t but fell by 38pc against the previous month. There were no Russian coking coal imports to Japan in September, as most buyers sought alternative sources to phase out Russian import following sanctions. Japan had imported 360,974t of Russian coal in September 2021, with imports of 2mn t during January-August this year.

Coking coal imports rose in line with steel demand. September domestic car production in Japan increased by 29.2pc from the previous month to 708,789 units and increased by 80.1pc from a year earlier as purchases of automobile parts eased. But Japan's automobile industry continues to face uncertainty, with its largest manufacturer Toyota further reducing October production on semi-conductor shortages.

The Argus premium low-volatile hard coking coal price fob Australia averaged $265.28/t in September, up by 9pc from August's average but down by 23pc from a year earlier.

Japan's metallurgical coke imports in September fell by 43pc from the previous month to 63,170t and dropped by 59pc compared with a year earlier, after Chinese coke prices trended higher in tandem with August domestic price hikes. Japan's met coke shipments arrived primarily from China.

By Cassia Teo