Coal imports by Bangladesh have witnessed a drastic fall during Feb’20, as a result of the downtrend seen in the construction sector.
Data compiled by CoalMint Research indicates that the country had taken 159,800 MT coal in Feb’20 as against 995,406 MT in Jan’20, thus recording its lowest total since Aug’19. The import volume was also marked 84% lower on the year from 1,008,808 MT in Feb’19.
Market participants have shared that the country’s cement industry has been facing hardship due to the fragile demand at a time when coal prices in the global market remained stable.
An origin-wise break-up showed that coal shipments taken from chief supplier-Indonesia decreased 84% on the month to 110,000 MT in Feb’20 as against 674,300 MT in Jan’20.
High prices restrained Bangladeshi coal buyers to procure vessel from South Africa, which was recorded nil during the month. Incidentally, it was the first time no coal was brought from Africa since Sep’19.
Remaining coal quantity was imported from Netherlands, which had witnessed an uptick in coal volume supplied during Feb’20. Coal intake from the country increased 15% M-o-M to 49,800 MT in Feb’20 compared with 43,450 MT in Jan’20.
The Bangladeshi coal market is expected to exhibit a mini revival before the incoming monsoon wherein the buyers would look to procure adequate coal prior to the temporary port closure for few months.
On the domestic front, there was no sight of relief for non-power sector, whose coal supplies remained suspended by the Barapukuria coal miner. As on 8 Mar’20, the company had dispatched the total of 3752.71 MT coal produced from the mine to the state-run power producer PDB.
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