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Thursday, 04 June 09
PAKISTAN TO IMPORT MORE COAL FROM INDONESIA - SEATRADE


COALspot.com (Pakistan): Richards bay to Pakistan sea freight has touched US$ 20.00 for  40,000/10 pct steam size in June 2009. South African coal being offered to Pakistan at US$ 85.00 / 87.00 levels.

" Due higher freight from South Africa to Pakistan, the cement mills in Pakistan are preferring now to go back to Indonesia where sea freight still at US$16/17 levels and coal price is in mid sixties ( US$65.00) fob basis and which is worked out to US$ 82 / 83 CIF Pakistan", said Mr.Muhammad Najib Balagamwala, Chairman of Seatrade Pakistan, the single largest coal importer in Pakistan.

“The demand of coal is still high despite 12 - 13 handy max vessels or about 450,000 – 600,000 MT of coal are expecting to arrive  in June and we expect another 12 - 13 handy max vessels in July” added Mr. Najib.

Out of 13 vessel in June and 12 vessels in July, total 20 vessel load cargo is imported by Seatrade for their Clients in Paksitan.

The demand for coal is increasing in Pakistan as pakistan moving ahead to produce 35 million tons of cement in 2009. Hence the imports of coal is expected to touch 3,8 – 4 million ton in 2009.

Flame, an European coal trading house is supplying Bukit Asam’s coal to Pakistan. Bukit Asam’s coal loading terminal is located in Sumatra island which is having freight advantage to Pakistani buyers. In addition to lower freight from Tarahan coal terminal, Bukit Asam’s coal also containing higher calorific value which is preferred by cements mills in Pakistan.

However, chairman of Seatrade is of the view that,  south African prices will come down in end June / July to reasonable levels and then south African coal price on CIF Paksitan basis, become more competitive and affordable.



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