Bangladesh Coal Imports Rise 81% Y-o-Y in CY19

Coal shipments taken by Bangladesh have soared during CY19, in a country where end-users’s domestic coal sourcing have been terminated to meet the shortfall at the state-run power plant.

Data compiled by CoalMint Research indicates that the country had imported 5,821,857 MT coal in CY19, which was marked 81% higher on the year from 3,220,882 MT in CY18.

The spiraling import of coal was attributed to its increased consumption in the brick kilns, which was aimed to support the rising demand from public and private construction sector. It is pertinent to note that Bangladeshi construction sector grew 10.25% in FY 2018-19, up from 9.92% the previous fiscal, data provided by Bangladesh Bureau of Statistics showed.

Notably, the country utilizes nearly 98% of the imported coal in brick kilns, which are compelled to use coal as the primary source of fuel for running their operations after the government had banned the use of firewood.

Sources have reported that there are many traditional brick kilns still relying on firewood to burn bricks. It is possible that total implement of the ban would lead to further increase in coal imports.

The rising coal demand was provided no help from the domestic coal sector in a country which has limited coal reserves. In addition, the situation was further aggravated by the termination of coal sales to the local buyers since Mar’18, which was aimed to elevate coal supplies for government run power plant.

Major Coal Suppliers:

Bangladesh majorly imports most of its coal from Indonesia and South Africa.

During CY19, coal intake from Indonesia surged 93% Y-o-Y to 4,500,820 MT as compared with 2,329,671 MT in CY18. While, imports of South African coal rose 88% on the year to 1,138,996 MT in CY19.

However, there was a fall recorded in coal sourcing from other origins which predominately includes Mozambique and Malaysia.

Country-wise Coal Imports  

Source: CoalMint Research | Quantity in MT

Bangladesh is likely to be more reliant on imported coal with the proposed commissioning of new coal-fired power plants expected in the upcoming years.