Statistics from Indonesia’s customs administration showed the country’s coal exports plunged to a three-year low in May, mostly due to lower shipments to India and China. Indonesia exported 29.4 million tons of coal during the month, down by 2.2 million tons from April and by 11.7 million tons from May last year.
Coal exports to India dropped by 6.8 million tons year-on-year to 3.5 million tons in May. For the first five months of the year, coal shipments to India were down by 35% year-on-year to 36.8 million tons. India was under strict virus containment measures in May, which put the country’s industrial activity and power demand under pressure. Looking ahead, high stocks and the government’s push to reduce reliance on imported coal will likely weigh on Indonesian coal exports to India.
Exports to China fell 4.3 million tons year-on-year to 11.4 million tons in May. India and China contributed to 95% of the overall decline in Indonesian exports in May. However, Indonesian exports to China in January-May increased by 2.0% year-on-year thanks to China’s quick recovery from the COVID-19 pandemic and sustained buying interest amid weak prices.
Exports to Japan, South Korea, and Taiwan decreased by a combined 800,000 tons year-on-year in May. For the January-May period, exports were down by nearly 3 million tons year-on-year to 31.7 million tons. Meanwhile, exports to Southeast Asian countries rose by 260,000 tons to 7.7 million tons in May and increased by over 4 million tons to 40.5 million tons in January-May.
