Indonesia’s exports to India increased by 30% m-o-m to 9.09 mnt in February, 2024
Indonesia’s thermal coal exports rise due to approved production quotas in response to increased power demand
Indonesian thermal coal exports rose by 7% m-o-m to 32.04 million tonnes (mnt) in February 2024 as against 29.99 mnt in January 2024. However, exports increased by 13% y-o-y to 32.04 mnt in February 2024 as against 28.02 mnt in February 2023. Indonesia’s thermal coal exports increased due to demand from Asian countries, supported by the approval of production quotas in response to rising power demand.
Exports pick up amid RKAB approval
In mid-January 2024, 150 out of 310 miners were awaiting approval, operating at only 50% of their production capacity. However, they received approval in February 2024. Furthermore, increased imports were facilitated by miners obtaining RKAB approval; the majority of miners received production approval, contributing to a rise in supply. Additionally, India’s growing demand for coal, along with favourable pricing, further fuelled the rise in import volumes.
Rise in demand from importing countries
Exports from Indonesia to India increased by 30% to 9.09 mnt in February 2024. The rising demand for coal in India, combined with favourable pricing, continued to drive up import volumes. Additionally, exports to Malaysia and Vietnam increased by 22% and 5%, respectively. Meanwhile, exports to Bangladesh saw a significant increase, attributed to the rising power demand and subsequent increase in demand from power plants, leading to a rise in exports.
Country- wise thermal coal exports
Indonesia’s exports to India increased by 30% m-o-m to 9.09 mnt in February, 2024 as against 6.97 mnt in January, 2024. Shipments to China fell by 7% m-o-m to 9.64 mnt in February 2024 as against 10.37 mnt in January 2023.
Exports to South Korea dropped by 26% to 2.28 mnt in February 2024 as against 3.07 mnt in January 2024. The significant rise in Indonesia’s coal exports to Malaysia can be attributed to its rapidly expanding power needs.
Port-wise exports
Exports from Taboneo increased by 17% to 5.75 mnt in February 2024 as against 4.94 mnt in January 2024. Shipments from Muara Jawa rose by 18% at 3.83 mnt in February, 2024 as against 3.24 mnt in January, 2024. Supplies from Tanjung Bara and Samarinda fell by 13% and 9%, respectively, in February, 2024.
Outlook
Indonesian exports may witness a rise in the coming month due to improved demand from Chinese buyers because of heating demand. Additionally, demand from India for Indonesian coal is expected to increase from the second half of March as summer sets in completely. Supply constraints in Indonesia will also be eased as the rainy season comes to an end.
Source: BigMint
