“A key coal benchmark for Asia rose to the highest level in over two years as Indonesia’s new export rules delayed shipments, tightening supplies just as demand for the power-plant fuel rises with the onset of summer.”
“Indonesia said last month it would take control of shipments of key commodities, including coal, and a new system implemented in June has sowed confusion, resulting in delays of deliveries from the world’s top coal exporter. This has pushed up expectations that Australian supply would help fill the gap.”
“Meanwhile, countries like Japan are also expanding coal use in order to slash reliance on liquefied natural gas, after the closure of the Strait of Hormuz and attacks on the largest export plant in Qatar disrupted about 20% of global flows. Coal-fired power plants in Japan — a key Australian buyer — have been running at a higher rates compared with last year, according to data compiled by Bloomberg.”
“Rystad Energy expects coal consumption in Asia to rise by close to 70 million tons in 2026, assuming a sustained tight gas market scenario, driven by power plants running at higher utilization rates, according to an emailed note.”
See also: Indonesia fleshes out plan to strengthen state control over commodity imports
“Indonesia’s Trade Ministry published technical regulations on Monday that give the central government more control over coal, palm oil and ferroalloy exports, part of a controversial plan by President Prabowo Subianto to boost earnings from the country’s plentiful natural resources…”