According to CoalMint’s vessel line-up data, Pakistan’s thermal coal imports in Jan’21 have recorded a drop of 32.5% m-o-m at 1.09 mn t against 1.62 mn t in Dec’20.
The imports for key sectors like power and cement have plunged by 34% and 25% respectively m-o-m basis while only imports by traders have moved up by 5% in January. Country-wise imports from prime exporters, Indonesia and South Africa have dropped by 56% and 24% respectively.
In conversation with various market participants, CoalMint learned that when global thermal coal prices were on the rise in Dec’20 (amid increased demand from China), gas shortage was intensifying and the RBCT port had planned maintenance scheduled in January; coal importers in Pakistan made excess import bookings during the month which retreated to monthly average levels of 1.20 mn t in January.
Also, in January, both Indonesian and South African coal were diverted to China amid domestic coal shortage there. As both the countries focused on the Chinese market, Australian sellers took advantage of the situation and diverted their coal to Pakistan which is why the country’s thermal coal imports from Australia jumped up by 71% m-o-m in January.
During Pakistan’s fiscal year 2020-21 that started in Jul’20, it imported about 9.37 mn t of thermal coal, up by 7% against 8.72 mn t in corresponding period last year with majority of imports being made by the power sector followed by the cement industry.
Outlook
Pakistan’s thermal coal imports in February is expected to rise amid shortage of furnace oil and gas for power generation and also because of drop in global thermal coal prices amid reduced demand from China because of Lunar New Year Holidays.
Leave a Reply