Indonesia's ban on coal exports likely to have 'serious repercussions' on market: observers

Singapore

TROUBLE is brewing in the coal market. After Indonesia, the world's largest exporter of the commodity and China's largest overseas supplier, announced a January ban on exports over concerns of low supplies in domestic power plants, coal prices have shot up.

The price of Indonesian 4,200 kcal/kg GAR (gross as received) coal rose 0.7 per cent after the announcement to hit US$54.56 per tonne on Jan 3, but pared some gains to US$54.32 at the close of Wednesday (Jan 5). And Australia's Newcastle coal prices, a benchmark for the Asian market, have been up 2.6 per cent since the Jan 1 announcement.