Indonesia benefits from China power crisis
Indonesia is China’s largest overseas supplier of coal. September saw this reach an import record after Beijing eased restrictions on imports to tackle its power crisis, reports Bloomberg.
Cargoes of coking, thermal, and brown coal from Indonesia surpassed 21 million tons in September, from 17 million tons in August, now accounting for 66 per cent of China’s total imports.
Chinese buyers are seeking other suppliers of the fuel to replace Australian exports that were banned a year ago after political relations with the nation soured.
Mongolia’s ability to supply more coal was impacted as pandemic restrictions in China’s neighbor saw cargoes sink below one million tons.
Indonesia’s benchmark coal price has hit record levels, bolstering a surge since June, when China pledged to raise imports to head off an electricity shortage.
Late 2020, China struck a three-year deal with Indonesian miners for US$1.5 billion of the fuel as Beijing sought long-term options to displace Australian supplies.