Coal buyers likely to turn to Australia amid disruption at Indonesia ports

摘要

The protracted disruption of coal shipments from Indonesia’s Kalimantan province is likely to push traders to turn to Australian coal, Reuters reported Feb. 8. The disruption is attributed to road blockages and bad weather in Kalimantan, which is considered to be one of the world’s biggest thermal coal regions. According to Pandu Sjahrir, chairman of the Indonesian Coal Mining Association, local authorities closed roads intended for coal transportation, leaving more than 130 ships offshore waiting to take coal, said the report. Indonesia aims to produce 489 million tonnes of coal in 2017, which will be mostly shipped to Asia. However, one trader said the disruption would likely push coal buyers to resort to Australian coal to meet their demand.