Thermal coal stockpiles at historical high in January

Stockpiles of steam coal at Ukrainian thermal power plants experienced a minor decline of 1.4% mom at the start of January to 5.7 mmt, according to Energobiznes data published on Jan. 22.

Roman Topolyuk: The current level of coal stockpiles, which can sustain electricity production in Ukraine for almost two months, remained at historically high levels at the start of January compared to 3.9 mmt a year ago. High capacity loads at nuclear power plants at the year’s end contributed to the high stockpiles. They were also triggered by growth in steam coal mining in 2012 (+7.3% yoy) that outpaced an electricity production increase (+4.9% yoy), while exports significantly dwindled (66% yoy). Only severe frosts for the rest of the winter could play into a better demand outlook for the Warsaw-listed coal miners, Coal Energy (CLE PW) and Sadovaya Group (SGR PW).