Russia’s seaborne coal shipments to Asia have shown signs of easing in recent months as supply tightness in both energy grades and coking coal used in steelmaking loosens. This assessment comes from Reuters, which relies on data provided by Kpler, a market-research firm tracking commodity flows.
In February, Russia exported a total of 8.48 million metric tons of coal, a modest rise from January’s 8.37 million tons but still marking a downward trend that has persisted for half a year. February’s figure also sits 21.6% below the 10.81 million tonnes exported in February 2022, underscoring a slower overall momentum despite the month-to-month uptick.
Following the escalation of the Russia-Ukraine conflict in February of last year, Russian coal producers redirected much of their shipments away from European customers toward Asian markets, according to Kpler. Seaborne coal exports to Asia peaked at 14.69 million tonnes in April 2022, nearly doubling pre-crisis levels, a milestone now recalled as markets reconfigure under sanctions and supply considerations.
Analysts note that a substantial portion of recent growth was driven by demand from India, the world’s second-largest coal importer after China. Russia has underwritten itself into a larger share of the Indian market by offering substantial discounts on thermal coal, particularly for electricity generation, a strategy that accelerated shipments in the Asia-Pacific corridor during the surge in demand.
Nevertheless, price competitiveness for Russian thermal coal has weakened as competing grades from broader Asian exporters—most notably Indonesia and Australia—alongside South Africa, a traditional supplier to both Europe and Asia, have scaled up their offerings. The shift in pricing dynamics has made it harder for Russian supplies to maintain appeal in the face of cheaper alternatives from the region, according to Kpler.
February’s data show a notable drop in the flow of coking coal to India, with shipments falling to 489,207 tonnes — the lowest level observed since September 2021 and roughly half of January’s volume. Exports to China amounted to 587,751 tonnes, lingering just above January’s minimum of 576,435 tonnes for nearly eighteen months, signaling a relatively restrained pace in the world’s largest coal consumer market.
With the calendar turning to March, external developments continued to influence the trade landscape. An Australian billionaire pursued legal challenges against sanctions on Russian companies, a move that reflected ongoing geopolitical tensions influencing commodity markets and the regulatory environment surrounding trade and sanctions policy.
On a broader industry note, OPEC’s involvement in oil agreements for Iraq continues to face practical hurdles, adding another layer of supply-chain considerations that intersect with energy and resource markets globally. Observers monitor how these policy and market shifts will shape coal and energy trade routes in the coming months.