Bangladesh: Coal Import Shipments Rise 3% M-o-M in Jan’20

Imported coal shipments taken by Bangladeshi end-users have begun the year on a higher note, appealing to the elevated coal requirement triggered by the prolonged ban on domestic coal sales.

Data compiled by CoalMint Research showed that coal imports taken by Bangladesh increased 3% M-o-M to 995,406 MT in Jan’20 compared with 964,422 MT in Dec’19. Import volumes had also recorded an exponential growth of 155% on the year from 390,610 MT noted in Jan’19.

It is pertinent to note that the Bangladesh government had ceased coal selling from the lone coal mine-Barakupuria, to local industries since 19 Mar’18, in order to elevate supplies for thermal plant owned by the country’s power development board.

The Barakupuria coal mining company had reported supplies to the tune of 894.79 MT coal to the local industries in FY19 (Jul’18-Jun’19) which have drastically fallen from the levels of 274,144.79 MT noted in FY18, thus compelling the end-users to cater their demand from overseas markets.

The country is likely to procure more shipments in the coming months, before witnessing the temporary closure of port operations amid monsoons during the second quarter.

Major Coal Suppliers:

Coal intake from chief supplier-Indonesia, increased 16% M-o-M to 674,300 MT in Jan’20 compared with 583,375 MT in Dec’19.

Higher prices reduced appetite for South African coal, whose intake fell 50% on the month to 165,256 MT in Jan’20.

Consecutively, Bangladesh had turned attention towards alternate markets to meet its demand. One coal shipment was recorded from Russia for the first time since Oct’18, while the country had also procured its first ever shipment from Netherlands during the month.

Remaining coal quantity to the tune of 55,000 MT was taken from Malaysia in Jan’20.

Source: CoalMint Research | Quantity in MT