Thermal coal exports from South Africa have been impacted by logistical constraints, which could bolster prices ahead of the winter season, Montel reported, citing industry experts.

Vinesh Chetty, head of energy commodities at Afriforesight, a Cape Town-based consultancy, highlighted multiple issues affecting coal logistics in South Africa in recent days. Chetty anticipated a decline in coal exports, with December also expected to weaken due to the potential duration of clearing port backlogs.

Europe has been increasing the demand for South African coal in recent months for it can be blended with high-sulfur US coal stockpiled at northwestern European ports for power generation.

Montel, based on Kpler's cargo-tracking data, estimated western European buyers likely to purchase over 8% or 0.4 million tonnes of South Africa's coal exports in November, compared to 5% in the preceding two months and a mere 2% in August.

South Africa has been the third-largest provider of thermal coal to Europe following the US and Colombia, accounting for around 20% of total supply from January to October this year, data showed.

South African state-owned logistics company Transnet was suspending processing trucks carrying coal to Richards Bay terminal to restore order after the influx of trucks, which limited coal exports through smaller multi-purpose and dry bulk terminals. The Richards Bay Coal Terminal (RBCT) remained relatively smooth export operations instead as it can receive coal via rail.

However, Chetty said that locomotive availability has been a persistent issue for months, impacting coal transportation through railways. Durban port, responsible for handling minor coal volumes, has faced a substantial vessel queue, he added.

Moreover, delays and congestion have been witnessed on the main road connecting Mpumalanga coalfields in South Africa to neighboring Mozambique.

Kpler's data showed that Mozambique's Maputo port saw an average monthly export volume of over 0.5 million tonnes so far this year, with May reaching over 0.7 million tonnes. However, October loadings fell to approximately 0.48 million tonnes.

The front-quarter API 4 price rose $1.33/t to $109/t FOB Richards Bay terminal recently. This places it marginally below the API 2 price, which includes delivery costs to Europe, at $111.90/t on ICE Futures.

(Writing by Riley Liang  Editing by Harry Huo)
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