China’s Indonesian coal imports hit record amid power crisis, Southeast Asian nation now biggest supplier

Cargoes of coking, thermal and brown coal from Indonesia surpassed 21 million tonnes in September, from just over 17 million tonnes in August

Buyers have been forced to tap other suppliers of the fuel to replace Australian exports banned almost a year ago

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Indonesia’s benchmark coal price has hit record levels, bolstered by a surge in demand since June, when Beijing pledged to raise imports in an ultimately unsuccessful attempt to head off the power crisis that is now gripping the country. Photo: Reuters

Published: 2:51pm, 21 Oct 2021Updated: 2:51pm, 21 Oct 2021

Indonesia is now overwhelmingly China’s biggest overseas supplier of coal, with shipments hitting a record last month after Beijing loosened curbs on imports to tackle its power crisis.

Cargoes of coking, thermal and brown coal from the Southeast Asian nation surpassed 21 million tonnes in September, from just over 17 million tonnes in August, and now account for about two-thirds of China’s total imports, according to customs data.

Chinese buyers have been forced to tap other suppliers of the fuel to replace Australian exports banned almost a year ago after political relations with Canberra soured.

But hopes that Mongolia could supply more coal – particularly the higher quality produced by Australia and used by steel mills – were dashed as coronavirus pandemic restrictions in China’s neighbour saw cargoes sink below 1 million tonnes, according to the data.

Indonesia’s benchmark coal price has hit record levels, bolstered by a surge in demand since June, when Beijing pledged to raise imports in an ultimately unsuccessful attempt to head off the power crisis that is now gripping the country.