Pakistan’s thermal coal imports rose a whopping 87% m-o-m to 1.1 million tonnes (mnt) in Mar’22, CoalMint’s vessel-line up data reveals. The sharp rise in imports was due to soaring power demand in the country as the hot and dry season has set in early this year.
The rise in import shipments can mainly be attributed to the higher number of vessels of Indonesian coal arriving at Pakistan’s ports. Total imports from Indonesia stood at 0.5 mnt, up 123% m-o-m, followed by South Africa at 0.4 mnt, an increase of 27% m-o-m.
Reduced imports of LNG also led to the rise in coal imports as global supply remained tight amid elevated prices.
Pakistan’s thermal coal imports from Mozambique registered a 227% m-o-m rise to 0.17 mnt in March, CoalMint data shows.
Shipments from Russia were recorded at 0.04 mnt last month as US, UK sanctions prompted Russian miners to offer coal at discounted rates.
Rise in power demand
Amid high coal and gas prices, electricity shortage across Pakistan has intensified, leading to a shortfall of 5000 megawatts (MW).
There have been unannounced power cuts as several power plants working on gas, coal and furnace oil have been closed.
As the country’s power sector consumes a large amount of Indonesian coal, imports from the country rose sharply. However, elevated prices remains a key concern as power utilities in the country have sought permission to raise tariffs.
Cement sales rise
With higher coal imports, Pakistan’s cement sales also recorded a 15% m-o-m rise to 5.04 mnt in March, as per data from the All Pakistan Cement Manufacturers Association.
However, cement traders in the country were also heard increasing their purchase of Afghan coal amid the sharp rise in South African coal prices.
South African RB2 (5500 kcal/kg NAR) grade coal prices recorded a 96% m-o-m increase to $304/t FOB basis.
Outlook
Pakistan’s coal imports are likely to remain in a tight range in the coming months as global prices have again risen sharply following renewed sanctions on Russia.
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