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Thursday, 03 October 13
INDONESIA AUGUST COAL EXPORTS FALL 12.90 % FROM JULY TO 30.71 MIL MT


COALspot.com:  Indonesia, the 15th largest economy in world, 4th largest coal producer in world and world's largest multi grade coal exporter shipped over $1.77* billion worth of coal in August.  According to our sources, the average export price of coal in August was around US$ 57.64* per mt.

Indonesian coal exports fell 12.90 per cent to 30.71* million tons in August compared to country's July exports of 35.26* million tons.

According to the information that we obtained from various sources, China, the world’s largest coal producer and the net coal importer again imported more coal from Indonesia compared to India. Indonesia shipped 8.89* million tons of coal to China in August 2013. India, another Indonesian largest coal importer and world's third largest coal producer imported 8.41* millions tons of coal for the same period.

According to Indonesian coal exports statistics, the China has dominated Indonesian coal imports in first quarter but almost lost to India in Q2.

Indonesia shipped 22.67 per cent less coal to India in August compared to country's July exports of 10.88* million tons. India imported mostly low calorific value coal from Indonesia in August 2013. Low calorific value power plant coal of Indonesian origin is still dominating Indian market compare to Chinese market. Indian coal importers, particularly traders are importing Indonesian ultra-low calorific coal for blending purpose with South African and American high calorific value coal.

International markets have traditionally been the principle destination for Indonesian thermal coal, with more than 79.95% of the county's total thermal coal exports in August, shipped to China, India, South Korea, Taiwan & Japan.

Indonesia shipped 9.86* and 8.89* million tons of coal to China in July and August 2013 respectively.

"Indonesian 4200 and 4500 GAR coals are still in high demand compared to other grades of low calorific value coal. But the bids from Indian buyers are not attractive to us", said a coal trader from Sumatera. Due to Indian rupee depreciation, Indian buyers putting lower bids compare to few months ago, he continues.

Indonesia's export thermal coals are bituminous to sub-bituminous in rank with widely varying ash, moisture and sulphur characteristics. In Indonesia, coals with as-received heat contents in excess of 5300 kcal/kg (gar) are generally classified as bituminous coals while coals with as-received heat contents of 4100 to 5300 kcal/kg (gar) are classified as sub-bituminous coals and below 4100 kcal/kg (gar) coals are classified as sub-bituminous "C" grade.

According to Indonesian mining law 4/2009, all coal miners in Indonesia to require to follows the government declared coal prices (HBA) when they conclude a coal sale and purchase contract with their buyers.

The Director General of Mineral and Coal’s declared the minimum selling price for Indonesian coal for September delivery was slightly higher than Augusts' price. The HBA for October delivery is expected any time this week.

The reference price is to be used by coal producers for all spot and term contracts. This coal benchmark price is stated as using a formula based on the index average of ICI-1 (Indonesia Coal Index), Platts-5900, Newcastle Export Index, and global Coal Index. The assessment basis of the coal price reference was calculated considering coal with GCV 6,322kcal/kg (GAR), Total Moisture (AR) 8.00%, Total Sulphur 0.8% (AR), Ash Content 15% (AR) and delivery Free on Board (FOB) Vessel basis.

The government declared HBA for September has up 0.25% per cent month on month. HBA fell 10.81% year on year.

The Ministry of Energy & Mineral Resources of Indonesia sets the coal’s spot price benchmark for September 2013 delivery at US$ 76.89 per ton (basis 6322 GAR coal), which is US$ 0.19 higher than August 2013 price and US$ 9.32 lower compared to the same period in 2012.

According to available information, the Indonesian government is studying a proposal to increase royalty on coal as well as to introduce an export duty for coal next year. Government is also studying another proposal to restrict coal loading ports in Indonesia to implement better monitoring system to eliminate illegal mining. Indonesia is having hundred of barge loading ports and anchorage coal loading point support coal loading in Kalimantan as well as Sumatera.

Indonesian leading coal miners are operating world class coal loading terminals in Kalimantan and Sumatera. 

**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 does not accept any responsibility or liability for any damage or loss caused to any person as a result of any action taken on the basis of this information.

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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