India’s growing coal production is apparently bad news for Indonesian coal producers as it would mean that coal suppliers in Indonesia will slowly lose the lucrative Indian market.
The Indonesian coal industry has already faced the ire of coal imports going lower in China. Indonesian suppliers had to lower prices on account of shrinking demand as a consequence of China having imported less.
State-run Coal India Limited (CIL) is on a production spree. The state-run miner is opening mines at the rate of one a month, and at the same time expanding the existing mines.
However, the domestic demand in India is rising slowly than expected, prompting CIL to turn towards Bangladesh as a potential export market.
CIL’s export intent might pose as a threat to the Indonesian coal industry. Possibly, Indonesian coal suppliers might lose market share as a result.
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