China will buy $1.467 billion worth of thermal coal from Indonesia in 2021, according to a trade deal signed between the Indonesian Coal Mining Association (APBI) and China Coal Transport and Distribution Association on November 25.
The deal is on track to increase coal exports to China by 200 million tonnes next year, APBI said.
With advantages of shallow-buried resources, lower mining costs and convenient transport conditions, Indonesia has become the top exporter of thermal coal in the world. China is its largest thermal coal buyer.
Indonesia is trying to step up coal exports to other countries around Southeast Asia, Vietnam in particular, as China is gradually containing its seaborne coal imports in recent years under the pressure of environment protection and performance of domestic producers.
In the first ten months, China's coal imports from Indonesia totaled 110.26 million tonnes, compared with 128.65 million tonnes over the same period a year ago, China's customs data showed.
Analysts, however, estimated Indonesia would take a bigger share in China's coal imports in the few years to come as Australia, the second coal supplier to China after Indonesia, has almost lost its foot in the Chinese market amid repeated spats between the two in some international affairs.
China informally banned coal imports from Australian early last month and the embargo seems to continue if the two countries couldn't reach a consensus in improving the bilateral relation.
China's imports of Australian coal were 2.52 million tonnes last month, compared with 6.37 million tonnes in October 2019.
Source:sxoal
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