Exports of Indonesian thermal coal totaled 18.8 million mt in February, sliding 6% in year-on-year comparisons, as shipments to all major offtakers slowed, customs data showed Tuesday.
The total exported volume was also down 4% from January, with reduced exports of sub-bituminous coal offsetting the more marginal gains seen in the bituminous market.
Taiwan was the largest consumer of Indonesian bituminous coal in February, posting a 14% increase on the month to reach 868,2020 mt, although this was down 16% year on year.
India remained the largest importer of sub-bituminous material at 5.9 million mt, although this was 28% lower year on year and a marginal reduction on the month, the data showed.
India had also scaled back its bituminous imports considerably in February, posting a 32% decrease from January, as alternative originations began to make their way into the market owing to lower freight costs. This had opened arbitrages into the country, sparking non-traditional trade flows such as the route between India and Colombia.
Chinese imports of bituminous coal were more or less steady in both on month and year comparisons, but sub-bituminous coal was down 20% from January as demand began to stall on climate policy, lower economic growth and competition from alternative and renewable energy sources.
Several sources had said that the lower demand from overseas consumers prompted Indonesian miners to turn their focus to the domestic market, which -- as the rainy season dragged on -- effectively tightened availability of specific grades more recently.
Indonesia's Ministry of Energy and Mineral Resources had set its monthly thermal coal reference price, also known as Harga Batubara Acuan, at a record low for the 10th consecutive month at $50.92/mt FOB in February, the lowest recorded since its inception in January 2009.
