After falling sharply since the last five months, Pakistan’s thermal coal imports from South Africa rose by 15% m-o-m to 0.64 million tonnes (mn t) in Nov’21, CoalMint’s vessel-line up data reveals.
The rise in imports came against the backdrop of a fall in the South African coal index last month as it eased by 32% m-o-m to $142/t.
Strong cement sales push up imports
Pakistan’s cement sector, key user of thermal coal, recorded 4.8 mn t in sales in Nov’21, up 7% y-o-y, according to the data released by All Pakistan Cement Manufacturers Association.
The strong economic recovery in the country amid rise in construction activity continued to support Pakistan’s cement industry, as its domestic sales grew 10.2% y-o-y to 4.12 mn t during the month. However, cement exports fell by 9.2% y-o-y to 695,779 tonnes due to resilient freight rates.
Volatility in thermal coal prices this year, and decline in trade with Afghanistan pulled down Pakistan’s cement sales by 4% y-o-y to 22.86 mn t, during Jul-Nov’21, the first five months of the country’s current fiscal year.
Imports from other-origin fall
Amid tight supply and lower cargo availability in Indonesia, Pakistan’s total thermal coal imports from other origins were lower at 0.14 mn t, down 14% m-o-m. Pakistani traders continued to delay Indonesian coal bookings, anticipating a further price correction.
Imports from Mozambique also fell 60% m-o-m to 0.12 mn t last month, while that from China, Russia, and the USA were nil.
Out of Russia’s total thermal coal exports, the major portion was reportedly redirected towards China last month due to a strong inventory restocking activity at Chinese power companies ahead of the winter season.
However, amid reduced availability of coal from Indonesia and Russia, Pakistan buyers once again increased imports from Australia — which rose by 76% m-o-m to 0.12 mn t.
Outlook
Pakistan’s coal imports may see a rise in Dec’21 amid a fall in prices of the same and due to an acute natural gas shortage in the country.
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