Bangladesh: Coal Import Shipments Attain Remarkable Growth in Feb’19

According to the vessel line-up data compiled by CoalMint Research, Bangladesh coal imports have recorded its highest monthly total in Feb’19 since Jul’15. (The period from which CoalMint has started tracking vessel line-up data for Bangladesh coal shipments).

Coal Imports had increased 158% M-o-M to 1,008,808 MT in Feb’19 compared with 390,610 MT in Jan’19. Besides, it had risen nearly 18 times from its year-ago total of 55,000 MT in Feb’18.

Nearly 90% of the total coal was taken from Indonesia, while the remaining quantity was sourced from South Africa during Feb’19.

Bangladesh’s coal import have been flying high during 2018-19 on account of lower domestic coal supplies inflicted by the temporary closure of coal sales in the domestic market.

During the first 8 months of Bangladeshi fiscal year 2018-19 (Jul’18-Feb’19), imports have reached 3,485,322 MT, eventually surpassing the previous year’s total of 2,581,818 MT recorded in the whole of FY18.

(Bangladeshi fiscal year runs from 1 July to 30 June)

Fall in Domestic Coal Supplies:

Barapukuria Coal Mining Company, the operator of the sole active mine in Bangladesh, had reported a 20% Y-o-Y fall in coal output during FY18.

The company had recorded coal production of 923,276 MT during Jul’17-Jun’18 period.

Coal excavated from the Barapukuria mines is utilized in the thermal power plants. The coal stocks remaining, after distribution to the power station, are sold to the local market.

However, in order to secure ample coal supply to the power station, Barapukuria has temporarily halted such sale of surplus coal to the local market.

The notice was issued during the month of Mar’18, following which coal supplies to the local market was affected thereon.

As per the data provided on company’s website, coal sales to Bangladesh Power Development Board (PDB) had increased 46% Y-o-Y to 787,103 MT; while sales to the local industries had fell 39% Y-o-Y to 274,145 MT in FY18.

With decision to resume coal sales to local market not known, the underlying industries would be dependent on imports to meet their share of coal requirement.