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Business Standard
11 hours ago
- Business
- Business Standard
China, India cut Indonesian coal imports, shift to higher-grade supply
Top thermal coal importers China and India are slashing Indonesian shipments of the power-generating fuel in favour of energy-dense grades from elsewhere as a global fall in prices has made higher-quality coal more competitive. Coal purchases by China and India from Indonesia, the world's biggest exporter, are dropping faster than their overall thermal coal imports, as both nations shift toward higher-calorific value (CV) coal that yields more energy per ton, industry officials say. "Higher CV coal is more expensive, but produces more energy for every dollar spent at current prices. One million tons of higher CV coal can replace 1.2-1.3 million tons or even 1.5 million tons from Indonesia," said Vasudev Pamnani, director at India-based coal trader I-Energy Natural Resources. In China, Indonesian medium- and low-calorific thermal coal has been struggling to compete with discounted Russian supplies of similar grades, said Kpler analyst Zhiyuan Li. Ramli Ahmad, the president director of Indonesian miner Ombilin Energi, said Indonesian coal could make a comeback if prices of higher grades rise due to the Middle East conflict, but lower-CV coal will suffer as long as more energy-dense grades are competitive. Mongolian coal in China and South African coal in India have been the biggest gainers at Indonesia's expense, with their shares touching record highs in these markets in the first five months of 2025, Chinese customs and Indian trade data showed. Improved efficiency will continue to boost Mongolian coal exports despite falling thermal coal prices in China as Mongolian coal has remained price-competitive, said Xue Dingcui, analyst at Mysteel. China and India have also stepped up purchases from Tanzania, which was largely been absent from the global seaborne coal trade map until Russia's war on Ukraine in 2022. Indian traders have also increased higher-grade coal purchases from Kazhakhstan, Colombia and Mozambique this year, while Australian supplies have gained share in China. Indonesian and Australian coal indexes, reflecting grades preferred by Chinese buyers, have been trending lower since October 2023, with the Australian benchmark declining faster than the Indonesian one. LOOKING WITHIN Overall, Chinese coal imports fell nearly 10% to 137.4 million tons in the first five months of the year, while shipments to India dropped more than 5% to 74 million tons. Indonesian exports have been the worst hit, with supplies to China and India sliding 12.3% and 14.3%, respectively. The southeast Asian nation's total coal exports dropped 12% to 187 million tons in the January-May period, data from analytics firm Kpler showed. To counter export declines, Indonesian miners are pivoting to domestic demand, with local deliveries poised to rise 3% this year and exports set to decline about 10%, according to the Indonesian Mining Services Association. Domestic demand, driven by nickel smelters, is on track to account for the highest share of Indonesian coal supply in at least a decade and stands at 48.6% currently, according to government data reviewed by Reuters. Indonesia caps the price of coal sold to power utilities, making smelters a more attractive alternative to exports. "The smelter industry is the brightest spot for now, we get better prices than we get from the power industry or sales to China," Ombilin's Ahmad said.
Time of India
19 hours ago
- Business
- Time of India
China, India shift to higher-grade coal, cut Indonesian imports
Top thermal coal importers China and India are slashing Indonesian shipments of the power generating fuel in favour of energy-dense grades from elsewhere as a global fall in prices has made higher-quality coal more competitive. Coal purchases by China and India from Indonesia, the world's biggest exporter, are dropping faster than their overall thermal coal imports, as both nations shift toward higher-calorific value (CV) coal that yields more energy per ton, industry officials say. "Higher CV coal is more expensive, but produces more energy for every dollar spent at current prices. One million tons of higher CV coal can replace 1.2-1.3 million tons or even 1.5 million tons from Indonesia," said Vasudev Pamnani, director at India-based coal trader I-Energy Natural Resources. In China, Indonesian medium- and low-calorific thermal coal has been struggling to compete with discounted Russian supplies of similar grades, said Kpler analyst Zhiyuan Li. Ramli Ahmad, the president director of Indonesian miner Ombilin Energi, said Indonesian coal could make a comeback if prices of higher grades rise due to the Middle East conflict, but lower-CV coal will suffer as long as more energy-dense grades are competitive. Mongolian coal in China and South African coal in India have been the biggest gainers at Indonesia's expense, with their shares touching record highs in these markets in the first five months of 2025, Chinese customs and Indian trade data showed. Higher production and improved efficiency will continue to boost Mongolian coal exports despite falling thermal coal prices in China as Mongolian coal has remained price-competitive, said Xue Dingcui, analyst at Mysteel. China and India have also stepped up purchases from Tanzania, which was largely been absent from the global seaborne coal trade map until Russia's war on Ukraine in 2022. Indian traders have also increased higher-grade coal purchases from Kazhakhstan, Colombia and Mozambique this year, while Australian supplies have gained share in China. Indonesian and Australian coal indexes, reflecting grades preferred by Chinese buyers, have been trending lower since October 2023, with the Australian benchmark declining faster than the Indonesian one. LOOKING WITHIN Overall, Chinese coal imports fell nearly 10% to 137.4 million tons in the first five months of the year, while shipments to India dropped more than 5% to 74 million tons. Indonesian exports have been the worst hit, with supplies to China and India sliding 12.3% and 14.3%, respectively. The southeast Asian nation's total coal exports dropped 12% to 187 million tons in the January-May period, data from analytics firm Kpler showed. To counter export declines, Indonesian miners are pivoting to domestic demand, with local deliveries poised to rise 3% this year and exports set to decline about 10%, according to the Indonesian Mining Services Association . Domestic demand, driven by demand from nickel smelters, is on track to account for the highest share of Indonesian coal output in at least a decade and stands at 48.6% currently, according to government data reviewed by Reuters. Indonesia caps the price of coal sold to power utilities, making smelters a more attractive alternative to exports. "The smelter industry is the brightest spot for now, we get better prices than we get from the power industry or sales to China," Ombilin's Ahmad said.
The Sun
20 hours ago
- Business
- The Sun
China, India cut Indonesian coal imports for higher quality
SINGAPORE/BEIJING: Top thermal coal importers China and India are slashing Indonesian shipments of the power generating fuel in favour of energy-dense grades from elsewhere as a global fall in prices has made higher-quality coal more competitive. Coal purchases by China and India from Indonesia, the world's biggest exporter, are dropping faster than their overall thermal coal imports, as both nations shift toward higher-calorific value (CV) coal that yields more energy per ton, industry officials say. 'Higher CV coal is more expensive, but produces more energy for every dollar spent at current prices. One million tons of higher CV coal can replace 1.2-1.3 million tons or even 1.5 million tons from Indonesia,' said Vasudev Pamnani, director at India-based coal trader I-Energy Natural Resources. In China, Indonesian medium- and low-calorific thermal coal has been struggling to compete with discounted Russian supplies of similar grades, said Kpler analyst Zhiyuan Li. Ramli Ahmad, the president director of Indonesian miner Ombilin Energi, said Indonesian coal could make a comeback if prices of higher grades rise due to the Middle East conflict, but lower-CV coal will suffer as long as more energy-dense grades are competitive. Mongolian coal in China and South African coal in India have been the biggest gainers at Indonesia's expense, with their shares touching record highs in these markets in the first five months of 2025, Chinese customs and Indian trade data showed. Higher production and improved efficiency will continue to boost Mongolian coal exports despite falling thermal coal prices in China as Mongolian coal has remained price-competitive, said Xue Dingcui, analyst at Mysteel. China and India have also stepped up purchases from Tanzania, which was largely been absent from the global seaborne coal trade map until Russia's war on Ukraine in 2022. Indian traders have also increased higher-grade coal purchases from Kazhakhstan, Colombia and Mozambique this year, while Australian supplies have gained share in China. Indonesian and Australian coal indexes, reflecting grades preferred by Chinese buyers, have been trending lower since October 2023, with the Australian benchmark declining faster than the Indonesian one. LOOKING WITHIN Overall, Chinese coal imports fell nearly 10% to 137.4 million tons in the first five months of the year, while shipments to India dropped more than 5% to 74 million tons. Indonesian exports have been the worst hit, with supplies to China and India sliding 12.3% and 14.3%, respectively. The southeast Asian nation's total coal exports dropped 12% to 187 million tons in the January-May period, data from analytics firm Kpler showed. To counter export declines, Indonesian miners are pivoting to domestic demand, with local deliveries poised to rise 3% this year and exports set to decline about 10%, according to the Indonesian Mining Services Association. Domestic demand, driven by demand from nickel smelters, is on track to account for the highest share of Indonesian coal output in at least a decade and stands at 48.6% currently, according to government data reviewed by Reuters. Indonesia caps the price of coal sold to power utilities, making smelters a more attractive alternative to exports. 'The smelter industry is the brightest spot for now, we get better prices than we get from the power industry or sales to China,' Ombilin's Ahmad said.
Time of India
21 hours ago
- Business
- Time of India
China, India shift to higher-grade coal, cut Indonesian imports
Top thermal coal importers China and India are slashing Indonesian shipments of the power generating fuel in favour of energy-dense grades from elsewhere as a global fall in prices has made higher-quality coal more competitive. Coal purchases by China and India from Indonesia, the world's biggest exporter, are dropping faster than their overall thermal coal imports, as both nations shift toward higher-calorific value (CV) coal that yields more energy per ton, industry officials say. "Higher CV coal is more expensive, but produces more energy for every dollar spent at current prices. One million tons of higher CV coal can replace 1.2-1.3 million tons or even 1.5 million tons from Indonesia," said Vasudev Pamnani, director at India-based coal trader I-Energy Natural Resources. In China, Indonesian medium- and low-calorific thermal coal has been struggling to compete with discounted Russian supplies of similar grades, said Kpler analyst Zhiyuan Li. Ramli Ahmad, the president director of Indonesian miner Ombilin Energi, said Indonesian coal could make a comeback if prices of higher grades rise due to the Middle East conflict, but lower-CV coal will suffer as long as more energy-dense grades are competitive. Live Events Mongolian coal in China and South African coal in India have been the biggest gainers at Indonesia's expense, with their shares touching record highs in these markets in the first five months of 2025, Chinese customs and Indian trade data showed. Higher production and improved efficiency will continue to boost Mongolian coal exports despite falling thermal coal prices in China as Mongolian coal has remained price-competitive, said Xue Dingcui, analyst at Mysteel. China and India have also stepped up purchases from Tanzania, which was largely been absent from the global seaborne coal trade map until Russia's war on Ukraine in 2022. Indian traders have also increased higher-grade coal purchases from Kazhakhstan, Colombia and Mozambique this year, while Australian supplies have gained share in China. Indonesian and Australian coal indexes, reflecting grades preferred by Chinese buyers, have been trending lower since October 2023, with the Australian benchmark declining faster than the Indonesian one. LOOKING WITHIN Overall, Chinese coal imports fell nearly 10% to 137.4 million tons in the first five months of the year, while shipments to India dropped more than 5% to 74 million tons. Indonesian exports have been the worst hit, with supplies to China and India sliding 12.3% and 14.3%, respectively. The southeast Asian nation's total coal exports dropped 12% to 187 million tons in the January-May period, data from analytics firm Kpler showed. To counter export declines, Indonesian miners are pivoting to domestic demand, with local deliveries poised to rise 3% this year and exports set to decline about 10%, according to the Indonesian Mining Services Association. Domestic demand, driven by demand from nickel smelters, is on track to account for the highest share of Indonesian coal output in at least a decade and stands at 48.6% currently, according to government data reviewed by Reuters. Indonesia caps the price of coal sold to power utilities, making smelters a more attractive alternative to exports. "The smelter industry is the brightest spot for now, we get better prices than we get from the power industry or sales to China," Ombilin's Ahmad said. Economic Times WhatsApp channel )
Zawya
11-02-2025
- Business
- Zawya
India's thermal coal imports seen falling for second straight year
India's thermal coal imports are expected to fall for the second straight year in 2025 due to decreasing dependence on coal for power generation, slowing economic activity and record high inventories, industry officials said this week. All six Indian and international coal traders Reuters spoke with at the Coaltrans India conference in New Delhi expected shipments of the fuel to decline this year. Three of the traders expected imports to plunge by around 10% to about 155 million metric tons. Two of them expected a fall of 1-2%, while another trader forecast a 7-8% decline. None of the traders wanted to be identified as they were not authorised to speak to the media. The tepid outlook for the world's second largest importer of the polluting fuel behind China comes as traders are worried about a global coal supply glut. Lower Indian appetite for imports could further pressure prices. India's imports of the power generating fuel declined about 2% to 173 million metric tons in 2024, data from consultancy Bigmint showed, due mainly to surging production by the world's largest coal miner Coal India, which pushed stockpiles at power plants to record highs. Higher production by Coal India has helped India slash dependence on imports by 5.5 percentage points over a decade to 20.5% in 2024, data from Indian coal trading firm I-Energy showed. The drop in imports were also driven by an increased demand for petroleum coke by the cement industry, as the price-sensitive market preferred the less expensive alternative, the data showed. "2025 is expected to see the cement sector prioritizing petcoke over thermal coal due to its competitive pricing," Vasudev Pamnani, director at I-Energy said in his presentation, adding that higher production by private miners also resulted in reduced buying by traders. (Reporting by NR Sethuraman and Sudarshan Varadhan; Editing by Kim Coghill)
