Indonesia: increase coal export to China

category:Finance
 Indonesia: increase coal export to China


As China suspended the import of Australian coal in the fourth quarter, which had a great impact on the market, the agreement was still very positive in terms of replenishing domestic coal supply. She believes that from the medium and long-term situation, it will help to stabilize the supplement of foreign trade coal and ensure the stability of domestic medium and long-term supply.

A coal industry source told reporters that the recent successful holding of the procurement docking meeting between China and Indonesia is another manifestation of Chinas expansion of imports from Indonesia, and it will build a new platform for the two countries to strengthen cooperation, enhance understanding and open up markets. In addition, the total coal output of Indonesia is expected to increase by 200 million tons next year. From 2015 to 2019, Chinas coal imports from Indonesia increased from 73 million tons to 138 million tons, an increase of nearly 90%. If the import volume continues to expand, it will cover most of the steam coal shortage caused by Australias coal import restrictions.

According to Mao Jun, a senior strategic analyst at Jinying capital, affected by the strict control policy this year, although Chinas coal imports from Indonesia decreased year on year from January to October, it did not affect the determination of Indonesian coal to enter China.

First of all, with the development of the de coal movement and the continuous epidemic situation, the European and American market demand has shrunk significantly, and the loose international coal supply situation has become prominent, and the coal consumption center has gradually shifted to Asia.

Secondly, although the demand of Japan, South Korea, India and other countries is relatively stable, the huge size of Chinas economy and the rapid prevention and control of the epidemic situation make selling to China the only pursuit of all coal producing countries.

Thirdly, the price of imported coal continues to fall, while the domestic coal price is relatively strong. Even considering the factors such as port miscellaneous charges, RMB appreciation, unloading delay due to the extension of customs clearance, calorific value loss and overdue storage fee, there is still a space of more than 100 yuan / ton between domestic and foreign coal prices, and the imported coal itself has a strong endogenous demand.

Finally, stimulated by the sluggish coal import from Australia to China, Indonesia, Russia, Mongolia, Colombia and other traditional back row importers have been fighting for market share, trying to take this opportunity to increase their import share in China and increase their trade income.

Against the backdrop of Chinas economic development and high domestic coal prices, Indonesia has been in close contact with Chinese importers, and some of Chinas coal (cv4700) quotations have reached a high level of about US $fob47 / T, but they have not stopped the enthusiasm of domestic coal imports. Mao said. By the end of Friday afternoon, the main contract of steam coal futures rose more than 2%. For the import of steam coal next year, Feng Yuan, senior commodity analyst of Cargill investment and shipping department, believes that looking forward to the first quarter of next year and the whole year of next year, supply constraints and demand recovery expectations are the mainstream game content of marine coal market. What is more certain is that the demand increase will come from India and emerging markets in Southeast Asia, represented by Vietnam. As a result, the favorable driving force of Asia Pacific coal suppliers (Australia, Indonesia) is significantly higher than that of the Atlantic region (Colombia, South Africa, etc.). Source: futures daily editor: Wang Xiaowu_ NF

Against the backdrop of Chinas economic development and high domestic coal prices, Indonesia has been in close contact with Chinese importers, and some of Chinas coal (cv4700) quotations have reached a high level of about US $fob47 / T, but they have not stopped the enthusiasm of domestic coal imports. Mao said.

By the end of Friday afternoon, the main contract of steam coal futures rose more than 2%.

For the import of steam coal next year, Feng Yuan, senior commodity analyst of Cargill investment and shipping department, believes that looking forward to the first quarter of next year and the whole year of next year, supply constraints and demand recovery expectations are the mainstream game content of marine coal market. What is more certain is that the demand increase will come from India and emerging markets in Southeast Asia, represented by Vietnam. As a result, the favorable driving force of Asia Pacific coal suppliers (Australia, Indonesia) is significantly higher than that of the Atlantic region (Colombia, South Africa, etc.).