Pakistan’s coal import falls by 13% in February as demand from power and cement sector recedes

According to CoalMint’s vessel line-up data, Pakistan’s thermal coal imports dropped by 13% m-o-m. Imports in February stood at 0.95 mn t against 1.09 mn t in Jan’21.

Imports for key sectors like power and cement have fallen by 7% and 24% respectively m-o-m basis while imports by traders has moved up by 19% in February.

Country-wise, imports from Indonesia and Australia have dropped by 36% and 39% respectively whereas imports from South Africa has moved up by 8% m-o-m basis.

Pakistan’s heightened power demand cooled-off

Pakistan’s coal imports from Indonesia dropped in February as country’s escalated power demand subsided after winter months. Also, LNG shortage got resolved during the month and its prices retreated by 81% to $5.60/mmBtu from its peak of $29/mmBtu on 15 Jan’21.

Export demand from cement sector dwindles

Country’s imports from Australia plunged amid lowered export demand for cement in February and increased thermal coal prices.

According to the data from All Pakistan Cement Manufacturers Association (APCMA), Pakistan’s cement dispatches in Feb’21 fell by 18% m-o-m basis and stood at 3.90 mn t against 4.73 mn t in Jan’21.

Australia has not been a key coal importing destination for Pakistan. However, the fall in Australian coal prices last year amid Chinese ban had made its prices to fall significantly making it a lucrative option for Pakistan’s cement and power producers.

However, since Jan’21, Australian coal prices have made a recovery of 41% from its lows of $38/t in October, making it not-so-attractive option for Pakistani buyers.

FY 20-21 imports rise y-o-y 

During Pakistan’s fiscal year 2020-21 that started in Jul’20, country imported about 10.3 mn t of thermal coal, up by 4.1% against 9.89 mn t in corresponding period last year with majority imports coming from South Africa followed by Indonesia and Australia.