Ukraine power station coal stocks stabilize at 4.6 mmt in September

Coal stockpiles at Ukrainian power stations amounted to 4.648 mmt as of September 1, Energobiznes reported on September 17, referring to the Energy Ministry. That’s 13% more yoy, but 17% less compared to the peak level observed on June 1.

Alexander Paraschiy: Importantly, the stockpiles of power plants that burn anthracitic coal declined 8% yoy, while power plants burning gas-coal increased their stocks 40% yoy. The improved balance of anthracitic coal looks potentially encouraging for independent coal producers, Sadovaya (SGR PW) and Coal Energy (CLE PW), that focus on this type of coal. At the same time, we do not expect a significant improvement in demand for coal in Ukraine till the end of 2013. The current coal reserves are enough to fuel all the Ukrainian thermal power plants for about 1.5 months and are 30%-50% higher than their optimal level.