Coal shipments from Indonesia, the world’s top thermal coal exporters, rose by 22% in February to 32.1 MnT, from 26.31 MnT in the same month in 2017, according to data from the State Statistics and the country’s central bank.
China’s surging demand for overseas coal last year, bolstered prices and shipments from Indonesia and Australia. Consumption at the world’s biggest coal consumer rose for the first time since 2014 last year.
But Indonesia’s February export dipped by 7.38% from 34.658 MnT in January, reflecting winter heating demand eased and as China’s government moved to restrict coal imports at certain ports.
The government didn’t provide details of destination.
Subdued Spot Market
Coal trading in Indonesia’s market was subdued this week, reflecting lackluster China’s demand as the government of the world’s biggest coal consumer banned shipments of imported coal in some ports.
Prices for 4200 GAR was offered at around USD 41/MT, but buyers bid lower with trades heard in a range between USD 39-40.8/MT in the past week.
“Coal imports have been banned in some ports in China. China has also been producing coal at a good rate. So, Chinese buyers are well-supplied,” said an Indonesian trader.
Indian buyers also enjoy a good bargain on 4200 GAR, which is the commonly traded Indonesian coal. Trade was heard at USD 38.5/MT FOB Kalimantan for 4200 GAR, for shipment to India only, said an Indian trader based in Mumbai by text messages. He also has received an offer for a cargo of 4200 GAR from South Kalimantan at USD 39/MT, for loading in May.
India’s demand for coal is picking up as buyers scramble to build up stockpiles ahead of monsoon season in June and July, he said.
But while India’s demand set to increase, many Indonesian producers have been locked in for long term supply, some until June and July, the Indian trader said.
“There aren’t many cargoes available in the spot market, unless the buyer is willing to pay premium to ICI 4,” he said referring to the Indonesian Coal Index 4 for 4200 GAR.
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