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Slower growth in world coal demand and lower international coal prices led to a decline in Indonesian coal production

17 Sep 2015

Slower growth in world coal demand particularly China and lower international coal prices have led to a decline in Indonesian coal production for the period January - August 2015.

Instead of lower mining costs, cheaper transportation costs, and favourable exchange rates Indonesia's coal industry still struggling to produce coal that the contrary has target early this year to produce in 2015.

According to media reports, Indonesia, end of August 2015, produced only 263 million tons of coal which is around 81.88 per cent of countries targeted tonnage for the period January - August 2015. Indonesia has targeted to produce around 425 million tons coal for this year and almost 80 per cent of total coal output for export destination.

Indonesia's coal production has declined 15.43 per cent for the period January to August 2015 compared to the same period in 2014. Indonesian coal miners produced only 263 million tons of coal for first 8 months of this year, around 48 million lesser compared to 311 million tons of coal produced for the same period 2014.

Indonesian steam coal exports for the first 8 months of 2015 fall 18 per cent to 201.1 million tons compared to 258 million tonnes for the same period last year. Indonesia shipped around 56.90 million less coal for the first 8 months compared to last year.

The Indonesian coal benchmark price has lost 8.82 percent since January 2015 and 16.47 per cent year on year. The government has declared Indonesian coal benchmark price at US$ 58.21 per ton to be used for September delivery, the lowest declared price for the history of HBA.

COALspot.com projects Indonesian coal production as well as exports will further down the rest of the year.

source: http://coalspot.com