According to the vessel line-up data compiled by CoalMint Research, Pakistan’s coal import has fallen to its lowest total for the past 8-month period in Oct’18.
The country has already overtook its previous year’s total imports, while imports during Jan’18-Oct’18 period has now reached 12,529,071 MT, 17% more than the yearly total of 10,738,658 MT attained in CY17 (Jan’17-Dec’17).
However, imports during the month of Oct’18 decreased 23% M-o-M to 933,906 MT compared with 1,219,089 MT in Sep’18, but were still 14% higher on the year compared with 817,100 MT in Oct’17.
The fall in monthly imports could be attributed to the devaluation of the Pakistan’s currency against US Dollar. Pakistani Rupee has fallen 10% over the month which now stands 133.68 against the US Dollar as on 2 Nov’18.
Besides, the newly formed government is undergoing financial vows which will take some time for the economy to stabilise.
A sector-wise break-up indicates that coal shipments bought across all the major coal consuming industries had fallen over the month except for the traders.
Coal Imports by traders have risen more than 3-folds to 125,317 MT in Oct’18 compared with 36,250 MT in Sep’18, which might be the case of local industries catering their share of demand by buying coal in small lots from traders instead of procuring costlier imported coal shipments themselves.
Imports taken by power sector has came down slightly on the month to 546,978 MT in Oct’18 compared with 556,934 MT in Sep’18. Cement sector’s coal sourcing decreased 9% M-o-M to 178,551 MT.
Commenting on the recent coal scenario in Pakistan, a coal trader had commented “It is (fall in imports) due to both rupee depreciation and infrastructure slow down. But Pakistan will start infrastructure project in upcoming 4-6 months and this will boost both the Steel and Cement sector, in turn increasing the coal demand.”
Major Coal Exporters:
Pakistan received coal shipments only from South Africa and Indonesia in Oct’18, and had witnessed a fall in imports from both of them.
Imports from South Africa were down 11% M-o-M to 662,626 MT in Oct’18, but up 10% Y-o-Y from 602,280 MT in Oct’17.
Coal imports from Indonesia also followed the similar trend, which were down 26% M-o-M to 271,280 MT in Oct’18, while rising 26% on the year from the levels attained in Oct’17.
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