Indonesia’s thermal coal exports rose 29% m-o-m to 35.6 mnt in March, 2022 as sanctions on Russia made major European and Asian buyers scramble for non-Russian coal.
Shipments to major exporting countries recorded a sharp rise last month with the highest supply to China, followed by India, and the Philippines.
Thermal coal exports to China rose sharply by 45% m-o-m to 12.4 mnt in March, 2022 as utilities raised their purchases to rebuild inventory ahead of the summer season.
Elevated South African coal prices also prompted Chinese traders to procure Indonesian coal.
Shipments to India rise 21% in Mar’22
Export shipments to India also recorded a decent 21% m-o-m rise to 8.9 mnt last month as limited domestic coal availability for the non-power sector prompted Indian buyers to book high-priced imported coal.
Expectation of prices rising further in the upcoming month surrounding rising tension between Russia and Ukraine also contributed to the increase in shipments.
Shipments to Japan, South Korea decline
After record-high coal imports in February, 2022, Indonesian exports to Japan fell by 10% m-o-m to 2.4 mnt in March, 2022, while those to South Korea fell by 35% m-o-m to 1.4 mnt last month.
Amidst a volatile international market, traders took a backseat before making any major bookings last month.
Thermal coal shipments to the Philippines and Malaysia also rose sharply to 2.8 mnt and 2.2 mnt, respectively as these countries predominantly depend upon the imported material for power generation. Shipments to Taiwan also rose to 1.2 mn t, CoalMint data showed.
Short-term outlook
Indonesian coal exports are likely to remain higher in the upcoming months amid rising demand in Asia and Europe as Russian exports restrictions continue to keep global supply tight. Production may further remain tight in the country amid the Ramdan celebrations.
However, record coal production in China and the ongoing lockdown restrictions may also limit any major Indonesian coal imports into the country.
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