Germany’s coal importers expect more shipments from next month as generators seek to shift to more coal burning and away from Russian gas, but fear logistical problems could hamper deliveries.
“The Verein der Kohlenimporteure (VDKi) expects significant volume increases in monthly import figures from September onwards,” Alexander Bete, president of the German Coal Importers Group, said in response to a Reuters survey.
September could bring a 50 percent increase over May, Bete said, when imports were 2.35 million tons. Monthly coal receipts recorded last winter by VDKi members amounted to 3.5-4 million tons.
Australia, South Africa, Indonesia and Colombia were all mentioned as potential coal suppliers by VDKi earlier this year.
Bete said the need for fossil fuels also depends on weather conditions and their impact on wind turbines’ electricity production.
Logistics issues include a lack of handling capacity at seaports and inland river barges, which can only sail with reduced loads as hot and dry weather has lowered river levels, as well as tighter availability of rail freight spaces .
The most important draft of the river Kaub on the Rhine, through which ships to the industrial districts of Mannheim and Karlsruhe have to pass, is only 52 cm., while barges need about 1.5 meters to sail fully loaded.
Bete said, however, that there are some positive prospects ahead, including the reversal of a temporary movement of some river barges to Romania to support Ukrainian grain exports.
Low water conditions in rivers and canals may persist until mid-to-late August, but could then ease, freeing up more shipping space.
Germany may import 32 million tonnes or more of steam coal for power this year, up from 27 million tonnes last year, Bete estimated, again citing the availability of wind power and weather-driven demand.
These volumes make up two-thirds of coal imports, with the remainder going to steel mills in the form of coking coal.
Source: Capital
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