Some buyers have cited Indonesia’s reference coal price as a possible deterrent, arguing it was higher than global market rates.
Surya Herjuna, the ministry’s coal business development director, said declining exports were caused partly by geopolitical tensions, which have dampened demand from key buyers, especially China and India, the two most populous countries, the Jakarta Post reported.
Prices for key thermal coal grades from top exporters – Indonesia and Australia – have been steadily declining since October and have fallen more sharply in recent weeks amid weakening demand.
Chinese customs reported a 20% year-on-year decline in coal imports from Indonesia in April. Some buyers have cited Indonesia’s reference coal price as a possible deterrent, arguing it was higher than global market rates.
Indonesia’s domestic coal sales also dropped to 12 million tonnes in the first quarter from 16 million tonnes a year prior.
Asia’s seaborne thermal coal prices have dropped to their lowest levels in four years, driven by reduced imports from major buyers China, India and Japan, according to a recent Reuters report./.
VNA
