Pakistan recorded a 9.4% month-on-month (m-o-m) increase in its thermal coal imports in May’21 to 1.56 million tonnes (mn t) against 1.43 mn t in Apr’21 CoalMint’s vessel-line up data reveals.
While imports from Indonesia recorded a sharp increase of 56.7% m-o-m at 0.42 mn t, the same from South Africa fell by 22.8% to 0.85 mn t and from Australia, dipped 5% m-o-m to 56,730 tonnes (t).
Electricity demand boosts Indonesian imports
Pakistan’s rising electricity demand upped Indonesian coal imports to a whopping 0.42 mn t as the country is trying to tackle hours of electricity outages in the hot summer months . Most of the industrial units in Pakistan have resumed operations at full capacity.
Owing to a fall in gas production in the country, power generation via coal and liquified natural gas has increased.
Pakistan’s power generation soared to 8,965 gigawatt hours in Mar’21 partly due to industries shifting from own power generators to the national grid amidst a growing domestic gas crisis.
Increasing South African coal prices dent imports
Pakistan’s imports of South African coal recorded a drop last month as the sharp rise in RB1 (6,000 NAR) grade coal prices made importers avoid booking coal from this country. RB1 (6,000 NAR) grade prices have risen 30% from $87.67/t in Jan’21 to $113.9/t as on 8 June’21.
Pakistan’s cement sector, which is one of the biggest consumers of South African coal, also posted a month-on-month decrease in cement sales to 3.2 mn t in May’21 from 4.94 mn t in Apr’21. However, the sector posted a considerable combined 40.95% year-on-year (y-o-y) growth in domestic and export dispatches on a yearly basis year-on-year, data from the All Pakistan Cement Manufacturers Association showed.
In the first 11 eleven months (July-May) of the outgoing fiscal year of the country, total cement sales (domestic and exports) stood at 52.22 mn t, up 20.91% y-o-y.
Rising economic activities in the country alongside the government’s flagship housing scheme to construct five million houses for the economically backward segment has been driving cement demand in the country.
However, surprisingly, Pakistan’s coal imports from Russia rose to 178,723 t for the first time in over a year. Over the last few months, Russia has been increasingly focusing on coal shipments to Asian markets as China discontinued booking Australian coal and is looking for markets in Indonesia, South Africa, the US, and Russia.
Outlook
In the near-term, increased economic activities are likely to push up the country’s coal imports. However, rising imported coal prices are likely to limit any sharp rise in coal imports as the country recovers from the Covid-19 pandemic.
Moreover, the country’s push for domestic coal production and renewable energy in the longer-run may also steadily reduce coal imports.
Leave a Reply