South  African  exports  of  thermal  coal  reached  highs  for  2017 at 7.03 million mt in May, 

posting increases  both  on  the  month and the year as flows into key consumer India hit an 

11-month high, the most recent customs data showed. 

Exported volume from the country during May had increased 13.5% from the previous month, 

and  8.4%  from  levels  seen during the same month in 2016, according to S&P Global Platts 

calculations, with India accounting for more than 50% of the demand. 

At 3.89 million mt, May exports to India were up 11% on April but remained 13% down on the 

year, marking the third consecutive month of year-on-year declines into the country. 

With India's share of offtake from South Africa declining, and demand in the more traditional 

markets  such  as  Northwest  Europe and the Mediterranean also shrinking, sellers of South

African  coal  appeared  to  be  looking  further  afield to seek alternative destinations for the 

material. 

After three consecutive  months of zero volumes, Turkey was seen to have imported 286,400 

mt in May,  an 11-month high for the country, while South Korea and Taiwan took over 1 milli

on  mt   collectively,  at 509,186 mt  and 605,000 mt,  respectively,  according to the customs 

data, released Monday. 

Thailand also imported almost 80,000 mt, while traditional buyer Pakistan imported more than 

1 million mt. 

The largest falls  were  evident in the Northwest European and Mediterranean region, where 

imports  totaled  just   75,000 mt -- all of which was destined for France -- the lowest level on 

record, according to S&P Global Platts data. 

This represented a fall of over 40% from the previous month, although countries in the wider 

European region took up some of the slack, with markets such as Bulgaria importing cargoes. 

The evolving trade flow meant that exports to the Atlantic basin were down by around 20% in 

May versus April, a reduction of around 240,000 mt on the month, while an additional 350,00 

0 mt had made its way into the Asia Pacific basin. 

Toward  the end  of May, congestion around South Africa's Richards Bay Coal Terminal had 

delayed  shipments  out of  the country,  with  almost  40  vessels  waiting  to load by May 31 

following a tropical cyclone that hit the country in mid-February. 

Richards  Bay  6,000 FOB netback back prices had averaged around $74/mt over the May-

loading period, according to Platts historical data.