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Importers to gain from 22% dip in Indonesia coal prices

Importers to gain from 22% dip in Indonesia coal prices

JAKARTA: Indonesian coal production and lower Chinese demand have pulled down Indonesian coal prices by 22% over the last 45 days, a trend that augurs well for plants that import fuel.

China has restricted coal imports at many ports and plans to phase out a large number of thermal plants, hurting demand.  Experts said prices are expected to fall further, keeping potential buyers away from the market as they are waiting for lower rates. Public sector power companies would continue to follow centre’s directive of not importing fresh consignments. A senior power company executive said: “As Indonesian prices fall, power plants within a radius of 150 km from ports will find it remunerative to import. Ash content in Indonesian coal is, at most, 10% while Indian coal contains ash of 30-40%.