Coal imports by Taiwan has increased for the first time in past five months, as measures taken to improve air quality reduced coal consumption at the power plants.
Data provided by customs indicate that Taiwan had imported 4.73 MnT coal in Feb’20, which was marked 19% higher on the month from 3.99 MnT in Feb’19, thereby ending the successive decline in imports noted on monthly basis since Sep’19.
The coal volume had also increased 20% Y-o-Y from 3.94 MnT in Feb’19, but the intake was still assessed lower than the monthly average imports of 5.63 MnT recorded in CY19.
Major Coal Exporters:
Coal intake from major supplier-Australia, increased 18% M-o-M to 2.36 MnT in Feb’20, which was also marked 9% higher on the year from 2.17 MnT in Feb’19.
There was a significant rise recorded in coal brought from Indonesia and Russia, which are the other key import market for Taiwan. Coal imports from Indonesia jumped 65% M-o-M to 1.53 MnT, while intake from Russia grew 52% on the month to 0.7 MnT in Feb’20.
Remaining coal volume was taken from Colombia and China during the month.
Taiwan’s Coal Imports Projected to Decline:
Country’s major power producer-Taipower had stated that it had reduced its output from thermal plants to 10 Billion kWhr, in a bid to improve air quality. Incidentally, the reduction rate was nearly double as that in CY18.
The company had also highlighted that during the air pollution season from September to December of last year, the power generation reduction of thermal power plants had already exceeded the power generation reduction in the entire of CY18.
The measures taken to improve air quality have lowered the imports in the near-term. Besides, the government’s plan to shift power generation mix from coal to gas and renewables is likely to reduce coal intake in the long-term as well.
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