Indonesian coal exports fall in March

Indonesia's coal exports fell on the year for the third consecutive month in March, led by lower demand for seaborne shipments from major importing countries China and India.

The world's largest coal exporter shipped 37.6mn t of all types of coal in March, falling by 8.1pc on the year, according to Indonesian customs data. But shipments were up by 2.8pc from February.

Overall shipments in the first quarter of 2026 totalled 113.8mn t, down by nearly 8pc from the same period a year earlier. Indonesia's exports have fallen for three consecutive months after peaking at 51.2mn t in December 2025.

The country has yet to approve all mining quotas for coal miners in the country, with no official update to the 580mn t of approved RKABs announced on 7 April. Indonesia had earlier hinted at a production target of 600mn t for 2026, down from 790mn t produced in 2025. Several miners have yet to receive their RKABs and are not able to offer shipments to its customers. Some producers who have received their RKABs are also under pressure from government directives to prioritise sales to domestic power plants, limiting the availability for spot seaborne shipments.

Shipments to China totalled 12.07mn t in March, falling by 21pc on the year and down from 14.23mn t in February, customs data show. Higher thermal coal prices in March, led by tight supply and a surge in freight rates due to the onset of the US-Iran war have put pressure on Chinese buyers' procurement plans. Chinese market participants took a cautious approach to buying coal and have generally resisted higher offers of Indonesian coal. China's thermal coal imports fell by 8pc on the year in March because of volatile seaborne prices and stable domestic supply.

China imported 25.92mn t of thermal coal in March — including non-coking bituminous coal, sub-bituminous coal and lignite — down from 28.19mn t a year earlier, according to Chinese customs data.

Indonesian exports to India dropped by 13pc on the year to 7.81mn t in March but was slightly higher from 7.35mn t in February. India remains well-supplied with domestic coal and increased imports from South Africa instead.

Combined stocks across India's plants, mines, ports, transit and stockyards were estimated at close to 200mn t as of mid-March. This is sufficient to meet India's coal burn requirement for an estimated 65 days. Elevated stockpiles throughout the first quarter of 2026 weakened utility procurement of imported coal.

Exports to southeast Asia reached 10.6mn t in March, up by nearly 8pc on the year and by 27pc from February. The increase in exports the region was led by more shipments to Thailand, Vietnam and Philippines.

Exports to Bangladesh fell slightly by 1.3pc on the year to 1.36mn t in March and was also down by 9.6pc from February.

By Nadhir Mokhtar