Indonesia’s coal exports fell to a three-year low in May, according to the latest statistics from the country’s customs administration. The decrease was mostly attributed to lower shipments to India and China, Indonesia’s two-most important coal export markets. During the month, the Southeast Asian country exported 29.4 million tons of coal down by 2.2 million tons from April and by 11.7 million tons from May last year.
Coal exports to India declined in May as the country was under strict virus containment measures which slowed down industrial activity and power demand severely. India received 3.5 million tons of Indonesian coal in May, 6.8 million tons lower than a year earlier. High inventories and the government’s push to reduce reliance on imported coal are expected to depress demand for Indonesian coal for the coming months.
Indonesian coal shipments to China also fell 4.3 million tons year-on-year to 11.4 million tons in May. However, it rose by 2.0% year-on-year in January-May due to China’s quick recovery from the COVID-19 pandemic and sustained buying interest amid weak prices. India and China contributed to 95% of the overall decline in Indonesian exports in May.
Shipments to Japan, South Korea, and Taiwan fell by a combined 800,000 tons year-on-year in May. For the first five months of 2020, exports to these Northeast Asian countries dropped by nearly 3 million tons year-on-year to 31.7 million tons. Meanwhile, Southeast Asian countries received 7.7 million tons of Indonesian coal in May, rising by 260,000 tons from a year earlier. For the January-May period, export to these markets grew by over 4 million tons to 40.5 million tons.
