China, India Shift to Higher-Grade Coal, Cut Indonesian Imports

Top thermal coal importers China and India are slashing Indonesian shipments of the power generating fuel in favor of energy-dense grades from elsewhere as a global fall in prices has made higher-quality coal more competitive.

- Reuters

SINGAPORE/BEIJING:

Coal purchases by China and India from Indonesia, the world's biggest exporter, are dropping faster than their overall thermal coal imports, as both nations shift toward higher-calorific value (CV) coal that yields more energy per tonne, industry officials say.

"Higher CV coal is more expensive, but produces more energy for every dollar spent at current prices. One million tonnes of higher CV coal can replace 1.2-1.3 million tonnes or even 1.5 million tonnes from Indonesia," said Vasudev Pamnani, director at India-based coal trader I-Energy Natural Resources.