Persistent dry weather in South Sumatra province of Indonesia has exacerbated dust pollution, disrupting coal supply in the region. Supplies could rise only following the onset of monsoon season at the end of the year.
The dust pollution, which is the result of drier-than-normal weather, prompted residents to block operations at a major jetty along the Musi river a few weeks ago, causing the jetty to halt operations. Similar environmental problems also affected operations at other jetties along the river. At least five producers and offtakers were affected by disrupted coal transportation, a miner familiar with the matter said.
The disrupted barging operations slowed down vessel loading progress in Muara Banyu Asin port. The affected coal supplies were estimated around 12mn t/yr, with calorific value in a range of GAR 3,400-6,000 kcal/kg, the miner added.
The drier-than-normal weather in Indonesia had broadly lowered water level and limited barging volumes in the key coal-transporting route in August, including Musi river in South Sumatra and Mahakam river in east Kalimantan. But the water level has recently risen to normal with some rains at the riverhead, a trader said.
The dust pollution could be alleviated only with the monsoon, which is expected to start in November, a month later than usual owing to the development of the El Nino weather trend, according to the country's Meteorology, Climatology, and Geophysical agency (BKMG).
Argus assesses the GAR 4,200 kcal/kg and GAR 3,400 kcal/kg coal market only for fob Kalimantan, which was last at $59.48/t and $38.03/t respectively, on 13 October.
