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Tuesday, 26 October 10
INDONESIA SHIPPED 5.32 PERCENT LESS COAL IN SEPTEMBER 10


COALspot.com:
Indonesia, the world largest coal exporter, shipped 21,661,817 MT of coal in September 2010, which is 5.32 percent lesser than Augusts’ exports of 22.896 million tons. According to our sources, Indonesia’s first nine-month coal exports have reached around 209 million MT.

China Imports
China once again or as usual become the largest importer of Indonesian coal. China has imported 5.020 million tons of coal in September 2010. However, China’s September imports of Indonesian coal were down 13.16 percent compared to August Imports of 5.782 million ton. According to Indonesian coal industry players, China has imported 53.204 million tons of coal for first nine months of this year. Chinese's utilities have imported more Indonesian coal than Indian Utilities for first nine months in 2010.

India Imports.
India was the second largest importer of Indonesian coal in September. India has imported 35.931 million MT for the period January – September 2010, according to available data from coal industry. India’s September imports were only around 3,884,313 MT, which was 17.93 percent of total September export of Indonesian coal. Indonesian shippers have shipped 1.86 percent less coal to India in September compared to August 2010 exports.

Indonesian total exports
Indonesia has already shipped around 209.371 million tons of coal during first 9 months and 161.160 mln MT of coal or 76.97 percent of total exported coal goes to China, India, South Korea, Japan and Taiwan.

Top ten importers of Indonesian coal till end of September 2010

Country
Jan – Sep 2010
Mln ton
China
53.20
India
35.93
South Korea
30.32
Japan
24.47
Taiwan
17.21
Malaysia
12.06
Thailand
8.86
Philippines
8.26
Hong Kong
5.33
Italy
4.18
Source: Various



Instead of  dropping in exports to India in September 2010, “Indian buyers are still here, and an Indian demand it will continue,"  an exporter from East Kalimantan said. 

“The price expectation from buyers for Indonesian medium GCV coal from India was not in line with the expectation of sellers”, said another trader from India.

The trader further added that, “Indian demands for coal in this month is less comapred to month of September as a huge amount of imported coal was laying at Indian ports to transport.  “The Demand will be expecting to increase again in second half of next month", he added.

“Indian & Chinese buyers are still dominating Indoensian coal market, the trend will continue as the demand from India & China is continuing high’ said, another producer of coal in Indonesia.



Indian buyers are looking for higher GCV coal rather than lower GCV coal. “Chinese buyers were also looking for coal with calorific value 6100 to 6300 GAD” a Surabaya based coal broker said. Most of the inquiries from China were based  on CIF basis where’s Indian inquiries were on FOB vessel. 

Indonesian big scale coal mine owners were already covered their shipments until the end of this year or having less cargo for spot market. Hence Indonesian coal prices are standing at stable to steady status. Indonesian coal price reference, which was declared by Ministry of Energy of Indonesia was up by 2.92 percent in October to US$ 92.68 per ton. Indonesian suppliers were required to refer the HBA when they conclude the deals with domestic as well as International buyers.

Coal Mine Investment
Indian power plants, steel industries and cements industries are also actively looking for the coal concessions to secure their fuel on long term. Reliance Power has recently signed a share-sale agreement with Indonesia’s Sugico Group to acquire three coal mines and the total value of the deal will be $1.6 billion, If all contractual - linked targets are met.

RPG group of India through its subsidiary company ICML, is also looking for coal mine expansion in Indonesia. ICML is already operating a coal mine in India for captive use.RPG Group's Integrated Coal Mining Limited (ICML) has acquired 10% stake  in Resource Generation Limited (RG), Australia recently. In addition to share acquisition, ICML has also inked an offshore coal procurement contract with RG to purchase 37 million tonne (MT) of coal over 20 years from RGL’s Boikarabelo mine in South Africa.

More than two dozen of Indian companies already Invested coal mines in Indonesia and around five to ten companies are already in operation.

The coal export information within this article is provided by coalspot.com on an "as is" and "as available” basis. All details about, given in good faith and has been collected from various press reports, organization and individuals considered reliable but without guarantee.  While every care has been taken to ensure the accuracy of information furnished in this article. COALspot.com shall be obliged if errors / omissions are brought to its notice for carrying out corrections in this article.(cs)

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