China's coal supply less affected by Indonesia coal export ban
BEIJING (Reuters) - China's coal supply will be less affected by Indonesia's one-month ban on coal exports, the country's largest source of coal, experts say. According to China's Global Times.
This is due to the fact that imports are low compared to domestic output, while China's coal production has already expanded and is now stable.
The Global Times reported that the Indonesian government on Saturday last week banned coal exports in January, citing concerns that insufficient supply at domestic coal-fired power plants could lead to a crisis. Severe power outage.
Reuters reports that Indonesia has a policy called the Domestic Market Obligations Policy, which requires coal companies to supply 25 percent of their annual output to the state power company Perusahaan Listrik Negara at a cost. Maximum $ 70 per tonne, which is lower than the current world market price.
Lin Boqiang, director of the Center for Energy Economics Research at Xiamen University, told the Global Times that the temporary export ban was likely to push up coal prices and hurt the global coal market in the short term. Indonesia is the world's largest exporter of coal.
Lin added that the impact on China's coal supply will be limited and manageable, as supplies are heavily dependent on domestic output, with imports accounting for only about 10 percent.
Data from China's General Administration of Customs shows that China imported 290 million tons of coal from January to November 2021, and Indonesia supplied about 61 percent of that volume.
Zhang Jinming, a coal analyst at Guosheng Securities, told the Global Times that a shortage of coal due to Indonesia's export ban would reduce China's coal supply by 5.3 percent.
Zhang said it would be difficult for other countries to find coal to replace the short-term export ban as Australian coal is still restricted and imports from other countries, such as Russia, remain Limited.
