The lower prices of coal from major exporters Indonesia, South Africa, and Australia are weighing on Russia’s capacity to sell more of its coal to Asia, which has become Moscow’s primary export market after the West slapped embargoes on its coal in 2022. Russian exports of both thermal and metallurgical coal to Asia slumped in February by 21.6% year-over-year, to around 8.48 million metric tons, according to data from Kpler reported by Reuters’ columnist Clyde Russell.
These countries received over 80% of Russia’s coal exports between August 2022 and July 2023, compared with 47% from August 2021 to July 2022, the U.S. Energy Information Administration EIA said in an analysis early this year. But competition from top exporters Indonesia, Australia, and South Africa and their competitive export prices in India and China, have been squeezing out Russian coal exports to Asia. Domestic logistical challenges are also weighing on Russia’s coal exports.