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AsiaElec COAL AsiaElec
Asia-Pacific coal prices to
moderate as Indonesia’s
export ban lifts: Fitch
ASIA THE rebound in coal prices in Asia is expected uncertainty for the sector.
to end as the Indonesian government lifts its coal Indonesia resumed coal exports on January
export ban and demand softens, Fitch has said. 10 as supplies to domestic power plants returned
Jakarta’s January ban on coal exports led to a to low levels, with the government allowing an
rebound in APAC thermal coal prices but it will initial 14 vessels loaded with coal to depart.
be short-lived, Fitch said. The Indonesian government announced a
Fitch Ratings reported in a report on Feb- ban on thermal coal exports on January 1, say-
ruary 14 that it expected more pressure on coal ing initially it would last until the end of the
prices in the near term on the back of seasonally month, after supplies at domestic power plants
weaker demand and the lifting of restrictions in fell to critically low levels. This government was
Indonesia. eager to avoid widespread power shortages and
Fitch noted that the Indonesian 4,200kcal blackouts.
index continued to remain strong at above $60 Indonesia is the world’s largest exporter of
per tonne in January 2022 but has still moder- thermal coal, exporting 400mn tonnes in 2020.
ated from the all-time high of above $100 per The ban had an immediate upward impact on
tonne in October 2021. the global price of coal.
Fitch believes that the temporary export ban China, India, Japan and South Korea together
will only affect Indonesian miners minimally as received 73% of Indonesian coal exports in 2021.
it was short-lived and progressively lifted within Of these, Japan and South Korea called publicly
the month. for Indonesia to ease off on its ban, as did the
However, the agency’s research team is of Philippines.
the opinion that the ban highlights regulatory
Week 07 16•February•2022 www. NEWSBASE .com P7
