South Korea's coal imports fell to an 11-month low in May, declining from the previous month, while extending year-on-year gains for a fifth straight month.

Imports totaled 8.30 million tonnes in May, up 20.1% from 6.91 million tonnes a year earlier but down 8.58% from 9.08 million tonnes in April, according to Korea Customs Service data released recently.

May marks late spring in the northern hemisphere, before the peak summer power demand season. Total electricity demand rose modestly from April but gains were limited. South Korea's operational power capacity stood at 84.30 GW in May, up 4.4% from a month ago and 1.82% year on year. Peak power demand reached 76.60 GW, up 4.07% month on month and 3.22% from a year earlier, Korea Electric Power Corp data showed.

Coal-fired power capacity was flat from the previous month at 40.80 GW, while combined solar, wind and hydro capacity rose 284 MW from April.

In the steel sector, mills remained cautious on metallurgical coal purchases due to weak profit margins. Coking coal imports fell 14.2% month on month in May, reflecting subdued industrial coal demand and weighing on total import volumes.

However, high spot natural gas prices kept coal economically attractive for power generation, boosting year-on-year coal demand from the power sector. A low comparison base from a year earlier also contributed to the sharp annual increase.

Imports from Russia fell notably month on month in May, while Australian coal shipments rose. Sanctions have constrained coal supply from Russia's Far East, prompting South Korean buyers to turn to Australia as a key alternative source.

Australia's coal supply chain improved in May after earlier port disruptions, enhancing export capacity and cargo availability to meet South Korean demand.

Coal import value stood at $1.09 billion in May, up 36.95% year on year but down 6.86% from a month ago. The average import price was $131.61/t, up 14.03% from a year earlier and 1.88% from April.

For January-May, total coal imports reached 46.91 million tonnes, up 19.51% from 39.25 million tonnes a year earlier. Import value totaled $5.67 billion, up 17.07% year on year.

By coal type, thermal coal (other bituminous and other coal) imports were 5.59 million tonnes in May, up 25.67% year on year but down 4% from April, accounting for 67.31% of total imports, up from 64.1% in April. Coking coal (other coking coal and hard coking coal) imports were 1.71 million tonnes, up 10.33% year on year but down 27.72% month on month, representing 20.61% of total imports.

Pulverized coal injection (PCI) imports totaled 794,400 tonnes in May, up 44.83% year on year and 43.3% from April, accounting for 9.57% of total imports. Anthracite imports were 207,800 tonnes, down 43.23% year on year and 38.52% month on month.

By source, the top five suppliers — Australia, Russia, Indonesia, Canada and the United States — accounted for 95.13% of South Korea's total coal imports in May, up from 94.6% in April.

Australia remained the largest supplier, providing 3.47 million tonnes, up 60.52% year on year and 16.56% from April, representing 41.77% of total imports, up sharply from 32.76% in April.

Imports from Russia totaled 1.96 million tonnes, up 66.07% year on year but down 13.51% from April, accounting for 23.57% of total imports, down from 24.92% in April. Indonesian shipments were 1.41 million tonnes, up 16.92% year on year but down 10.06% month on month, representing 16.93% of total imports.

Canadian coal imports were 878,100 tonnes, down 7.11% year on year and 20.25% from April. U.S. coal imports totaled 189,700 tonnes, down 41.7% year on year and 40.08% month on month.

South Korea imported 61,600 tonnes of coke in May, surging 219.12% year on year but edging down 0.07% from April. Import value was $10.88 million, up 114.6% year on year and 12.9% month on month. The average coke import price was $176.57/t, down 32.75% year on year but up 12.98% from April.

For January-May, cumulative coke imports reached 372,300 tonnes, up 2.4 times year on year, with import value totaling $59.64 million, up 117.99% year on year.