China sells coking coal to Indonesia in rare trade, sources say
Beijing/singapore: China sent a rare shipment of at least three cargoes of coking coal to processors in Indonesia's Sulawesi in May, sources familiar with the matter said, encroaching on a market typically dominated by supplies from Australia and Indonesia.
The world's biggest importer of coking coal, China is not a major exporter of the steelmaking fuel, and has exported it to Indonesia only three times since the start of 2024, monthly Chinese customs data shows.
State-run
Shanxi Coking Coal Group
sold coking coal to China Risun Group, which was later exported to Indonesia last month, three sources said. Risun runs one of the largest coke-processing plants in Indonesia's Sulawesi region.
The state-run group sold another cargo to Hong Kong Jinteng Development Ltd for export to Indonesia, the source said, while the second source added that it also sold a third cargo to a Dexin Steel plant in Indonesia.
The sources sought anonymity as they were not authorised to speak on the issue.
Shanxi Coking Coal, China Risun and Dexin Steel did not immediately respond to requests seeking comment. Reuters was unable to reach Hong Kong Jinteng Development Ltd.
Independent consultant Lawrence Yan said the moves were designed to test the economic feasibility of Chinese supply and show traditional sellers, such as Australia, that Indonesian plants had alternatives.
Higher costs and strong competition from Russia and Mongolia made it unlikely the trade would become mainstream, however, he added.
In the longer term, as China's slowing steel industry could free up supply of coking coal, turning it into a regular export product, an executive at Chinese trading house Winsway said last week.
China exported 78,030 metric tons of coking coal to Indonesia in April, the first shipment since last July. Data for May is not available yet.
Indonesian Coke Overcapacity
Coke processing plants in Sulawesi have emerged as a supply hub for metallurgical coke - a raw material used by steelmakers, boosting demand for coking coal, which is used to make the coke.
Indonesia's exports of met coke hit a record high in 2024, according to data from Kpler. However, the region is now struggling with overcapacity, one of the sources said, with utilisation at only 60% to 70%.
Indonesia's met coke exports have also been hit by December's import curbs imposed by major buyer India.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
First Post
35 minutes ago
- First Post
Panda Bonds Explained: Why Brazil Is Embracing China's Yuan Vantage with Palki Sharma
Panda Bonds Explained: Why Brazil Is Embracing China's Yuan | Vantage with Palki Sharma | N18G Panda Bonds Explained: Why Brazil Is Embracing China's Yuan | Vantage with Palki Sharma | N18G Brazil is turning to China for capital. President Lula da Silva's government plans to issue Panda Bonds - debt sold in Chinese yuan to Chinese investors. This move not only diversifies Brazil's borrowing but also challenges the dominance of the US dollar. As BRICS gains momentum and trust in Washington fades, Panda Bonds are becoming a symbol of a shifting world order. Palki Sharma explains the implications. See More
&w=3840&q=100)
Business Standard
37 minutes ago
- Business Standard
India's overzealous anti-dumping response may gradually fuel protectionism
Its liberal use of anti-dumping duties risks turning into protectionism - and may do more harm than good Rajeswari Sengupta Listen to This Article For years, several countries, including India, have worried about imports of cheap Chinese goods undermining local industries. These fears have grown in recent months due to rising United States-China trade tensions. As of June 16, the US has increased the effective tariff on Chinese imports to 55 per cent. The higher costs of selling to the US have raised concerns that China will dump its surplus goods in other markets. In response, many countries, including India, are using trade remedies such as anti-dumping duties (ADDs) to protect themselves. India is now the world's biggest user of ADDs — not only
Hindustan Times
an hour ago
- Hindustan Times
IKEA competitor At Home declares bankruptcy, set to close 20 locations as CEO blames Trump's trade policies
The home décor retail chain At Home has filed for Chapter 11 bankruptcy after weeks of speculation. The Texas-based company, which operates around 200 stores across 40 states, made the filing on Monday. At Home CEO Brad Weston pointed to former President Donald Trump's trade policies as one of the reasons behind the company's financial troubles. 'We are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs,' Weston said, as per Daily Mail. Despite the bankruptcy filing, Weston said most stores will remain open and that the move is intended to 'increase the resilience of our business for the long term.' According to reports, about 20 locations will close as part of the process, with more possibly on the chopping block as the company works through bankruptcy court. At Home specializes in low- and mid-priced home goods, selling everything from $30 area rugs to $450 accent chairs. But analysts say the chain has struggled to keep up with consumer expectations and competitors. 'They have way too much debt, their stores are not particularly interesting, and they are being beaten on price and interesting assortments by chains like IKEA and HomeGoods,' said Neil Saunders, managing director at GlobalData. He added that more store closures may follow, though, 'This remains to be seen.' At Home was taken private in 2021 in a $2.8 billion deal with investment firm Hellman & Friedman. The company reportedly missed a key interest payment on May 15, according to The Wall Street Journal. Also Read: Did Donald Trump dial to 'grossly incompetent' Tim Walz after tragic Minnesota shooting? Rumors of a possible bankruptcy began in April, as reports highlighted over $2 billion in debt and fallout from Trump-era tariffs. At Home sources much of its inventory from China, and the 30% tariff rate on Chinese imports has made it harder for the retailer to stay competitive. The company has faced pressure to either raise prices or take on more debt. Since late 2023, At Home has been trying to shift sourcing away from China and toward suppliers in India, according to Bloomberg. But supply chain transitions take time. India is currently negotiating with US officials to lift a paused 26% tariff on goods, which could help in the long term. The retailer saw strong performance during the COVID-19 pandemic, when home improvement spending surged. But with inflation taking a toll, consumers have cut back on nonessential purchases. 'Although inflation has been easing, overall prices are still significantly higher than pre-pandemic levels,' said Tim Hynes, global head of credit research at Debtwire. 'There is a notable shift away from discretionary goods, such as home furnishings, towards essential items and experiences.' Hynes also noted that At Home's bankruptcy might lead to short-term promotions for shoppers, but longer-term challenges remain. 'While some supply chain issues have stabilized, geopolitical risks and the potential for increased tariffs on imported goods introduce uncertainty,' he said. 'Retailers like At Home, which rely heavily on imported products, could face higher procurement costs and potential disruptions if tariffs are implemented.' At Home is one of several home-focused retailers to file for bankruptcy since 2022. Others include Bed Bath & Beyond, Christmas Tree Shops, Bargain Hunt, Conn's, LL Flooring, and The Container Store. LL Flooring and The Container Store have since emerged from bankruptcy. The others have closed their stores.
