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Wednesday, 25 April 12
CHINA IMPORTS 9.76 MMT AND INDIA IMPORTS 7.03 MMT OF INDONESIAN COAL LAST MONTH


COALspot.com: Indonesia, the world largest coal exporter, shipped  30.64* million tons of coal in March 2012, compared to 27.12* million tons in February 2012. The March coal exports up 12.98 percent from February exports.

China was the largest importer again last month, followed by India. China has imported  9.76* million tons of coal meantime, India's imports reached to 7.03* million tons last month.

Indonesia's coal exports to China has increased 46.92 percent in March to 9.76* million tons and to India increased by 7.38 percent. Indian utilities have imported 7.03* million tons in March, compared to 6.55* million tons in February 2012.

81.33 percent of total Indonesian coal exports in March goes to top five traditional coal importers Indonesian coal such as China, India, South Korea, Japan and Taiwan.

“Inquiries from India and China are still in the market,"  said an international coal trader who is operating in Indonesia. However the FOB prices are not favoring suppliers at this moment, the gap between offers and bids are quite wider he added.

5,000 kcal/kg GAR coal from Central Kalimantan is being bids at US$ 70-71 this week, while the 5,800 kcal/kg GAR coal is around US$90 - 92/mt, a trader said.

Indonesia is in process to issue a regulation to (re) introduce duty on coal export. However the exact percentage of duty is unknown but speculated between 15 percent to 25 percent this year and 50 percent next year.

However the market does not know whether the proposed export (higher) duty on Indonesian coal creates less competition or not, if it is introduced and implemented fully.

"Coal export duty could affect price competition of Indonesian coal and also coal producers future earnings”, said a coal player from India. “Coal demand in Asia, principally Japan, China and India remains strong. Hence the market will absorb a minor duty on coal” said a coal exporter from Indonesia.

Indonesia is already introduced regulation to control selling price of coal and now planning to introduce duty on coal & coal export ban on lower GCV to limit export of coal from Indonesia keeping future in mind.

There are rumors speculated in the market that,  the government may introduce duty for low calorific value coal instead of introducing export restriction for low calorific value coal.

The Indonesian government is also scheduled to issue regulation on export duty for minerals on or before May 6, 2012.

According to COALspot.com’s this week polling, 40% of producers are in opinion that, if the coal export duty introduced and implemented fully, then Indonesia will be the most affected country compared to China and India. However 52 percent of producers are still believed that, India and China will be most affected countries and not Indonesia.

In the meantime, 78% of end-users were believed that, India and China will be mostly affected countries if the export duty introduced for Indonesian coal. Only 14 percent of end-users believed Indonesia will be the affected country and not China and India.

The polling is still open for voting and will be closed on 29 April 2012.

Indonesian HBA fall to lowest level since January 2011 this month. The monthly coal reference price for coal sales in April fall  by 6.43 percent, the lowest dropped in last 16 Months.

The Ministry of Energy & Mineral Resources of Indonesia sets the coal’s spot price benchmark for April 2012 at US$ 105.61 per ton, US$ 7.26 lower than March 2012 Price.

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.* Figures are subject to verification (cs)



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