Pakistan’s thermal coal imports witnessed 13% m-o-m fall to 0.96 million tonnes (mnt) in April 2022 after rising sharply in March, CoalMint’s vessel-line up data reveals.
While imports from major countries fell, shipments from Russia picked up after a gap of five months despite the sanctions imposed by western countries. This is because the cargoes that were booked earlier had arrived and a few cargoes booked by the Chinese power plants also came, informed participants.
Elevated global LNG prices and discounted Russian coal also contributed to the rise in coal imports from the country into Pakistan which is already facing an extreme heatwave.
Trade balancing
Qty in mnt
The absence of Mozambique coal in April was compensated by China and Russia to some extent. But, overall coal imports decreased from key exporters, Indonesia and South Africa, resulting in a net fall in imports in April.
Shipments from Indonesia decline by 8%
Pakistan’s coal imports from Indonesia were recorded at 0.5 mnt, down 8% m-o-m amid elevated coal prices despite power crisis in the country. Indonesian 6500 GAR coal prices rose by 50% since February 2022.
The shortage of gas and other power generating fuels led to electricity shortfall of 7,000-8,000 MW in the country as people living in the urban areas complained about power outages of 6 to 10 hours.
On a y-o-y basis, imports from Indonesia have recorded a whopping rise of 67% y-o-y, indicating the country’s increasing power demand.
South African coal imports fall
Elevated South African coal prices resulted in lower shipments from the country last month to 0.4 mnt, down 13% m-o-m. The price for 5500 NAR grade coal has gone up by 66% since February 2022.
The country’s cement sector, which is the highest importer of South African coal, was heard purchasing more coal from Afghanistan amid its relatively cheaper prices.
For the first nine months of the current financial year 2021-22, the country’s cement producers sold 40.8 mnt, down by 6% y-o-y, data from the All Pakistan Cement Manufacturers Association revealed. While local dispatches remained stable at 36 mnt, exports fell by 35% y-o-y.
Pakistan’s coal imports from China also resumed after a three-month gap as it was recorded at 0.05 mnt in April, as per CoalMint data. Beijing sometimes exports coal to Pakistan for the country’s power plants set up by the Chinese players.
Outlook
High demand during the summer season increased Pakistan’s coal requirement but elevated prices are acting as deterrent which means that Pakistan’s coal imports would remain rangebound or may even decrease in the near-term.
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