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Thursday, 07 November 13
INDONESIAN COAL EXPORT VOLUME INCREASED; REVENUE DECREASED


COALspot.com:  Indonesia, the 15th largest economy, 4th largest coal producer in the world and world's largest multi grade coal exporter shipped over $1.73* billion worth of coal in September.  According to our sources, the average export price of coal in September was around US$ 56.45* per mt or around 2.06 percent lesser than Augusts' average selling price of US$ 57.64.

Country's September export volume rose by 0.08% but the revenue was declined compared Indonesia's August coal export revenue. Indonesian coal exports revenue fell by 1.98% to US$ 1.735* billion in September to compare to around US$ 1.77* billion in August.

Indonesia shipped around 30.73* million tons of coal in September up 0.08 per cent compared to country's August exports of 30.71* million tons.

According to the information that we obtained from various sources, China, the world’s largest coal producer and the net importer of coal only imported around 7.85* million tons of coal in September or around 11.66% lesser than China's Augusts' coal imports from Indonesia.

In the meantime, India coal imports from Indonesian in September rose 8.42 million tons. Indonesia shipped slightly higher quantity to Indian in September compared to August exported Quantity.

According to Indonesian coal exports statistics, the China has dominated Indonesian coal imports in first quarter but almost lost to India in Q2. India and China are the main coal importers of Indonesian coal in last few years. Around 52.97*% of total Indonesian coal exports in September burned in India and China.

Indonesia shipped 0.18 per cent more coal to India in September compared to country's August exports of 8.41* million tons. India imports mostly low calorific value coal from Indonesia.
 
"Low calorific value power plant coal of Indonesian origin is still dominating Indian market compare to Chinese market", said a coal exporter from Sumatra Island of Indonesia. Indian coal importers, particularly traders are importing Indonesian ultra-low calorific coal for blending purpose with South African and American high calorific value coal.

International markets have traditionally been the principle destination for Indonesian thermal coal, with more than 79.14% of the county's total thermal coal exports in August, shipped to India, China, South Korea, Japan & Taiwan.

Indonesia shipped 8.89* and 7.85* million tons of coal to China in August & September 2013 respectively.

Indonesia's export thermal coals are bituminous to sub-bituminous in rank with widely varying ash, moisture and sulphur characteristics. In Indonesia, coals with as-received heat contents in excess of 5300 kcal/kg (gar) are generally classified as bituminous coals while coals with as-received heat contents of 4100 to 5300 kcal/kg (gar) are classified as sub-bituminous coals and below 4100 kcal/kg (gar) coals are classified as sub-bituminous "C" grade.

Indonesian Coal Price Reference
According to the Indonesian mining law 4/2009, all coal miners in Indonesia to require to follows the government declared coal prices (HBA) when they conclude a coal sale and purchase contract with their buyers.

The Director General of Mineral and Coal’s declared the minimum selling price for Indonesian coal for September delivery was slightly higher than Augusts' price. The HBA for October delivery is expected any time this week.

The reference price is to be used by coal producers for all spot and term contracts. This coal benchmark price is stated as using a formula based on the index average of ICI-1 (Indonesia Coal Index), Platts-5900, Newcastle Export Index, and global Coal Index. The assessment basis of the coal price reference was calculated considering coal with GCV 6,322kcal/kg (GAR), Total Moisture (AR) 8.00%, Total Sulphur 0.8% (AR), Ash Content 15% (AR) and delivery Free on Board (FOB) Vessel basis.

The government declared HBA for September has down 0.36% per cent month on month and 10.96 % year on year.

The Ministry of Energy & Mineral Resources of Indonesia sets the coal’s spot price benchmark for October 2013 delivery at US$ 76.61 per ton (basis 6322 GAR coal), which is US$ 0.28 lower than September 2013 price and US$ 9.43 lower compared to the same period in 2012. The bench mark price for coal for November loading is expected to be released by Director General of Mineral and Coal any time this week.

Royalty Increase; Export Duty
According to available information, the Indonesian government is studying a proposal to increase royalty on coal as well as to introduce an export duty for coal next year. Government is also studying another proposal to restrict coal loading ports in Indonesia to implement better monitoring system to eliminate illegal mining. Indonesia is having hundred of barge loading ports and anchorage coal loading point support coal loading in Kalimantan as well as Sumatera.

Indonesian leading coal miners are operating world class coal loading terminals in Kalimantan and Sumatera.

**The coal export information within this article is provided by COALspot.com on an "as is" and "as available” basis. All details about, given in good faith and has been collected from various press reports, organization and individuals considered reliable but without guarantee.  While, every care has been taken to ensure, the accuracy of information furnished in this article, COALspot.com does not accept any responsibility or liability for any damage or loss caused to any person as a result of any action taken on the basis of this information.

COALspot.com shall be obliged if errors / omissions are brought to its notice for carrying out corrections in this article.* All figures (volume, revenue and price) are subject to verification (cs)



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