Lower coal inventories in January and rising power consumption may cause China to increase thermal coal import in February-March, according to the latest Indonesia Coal Report (ICR) published PT Indeks Komoditas Indonesia (IKI).
The report said that Japan’s coal import is also expected to increase in February on rising power demand and declining output from hydro and solar plants.
Coal import by Vietnam is also expected to rise in February due to lower power output from hydro power plants and increase in manufacturing activities, although the rising Covid-19 cases in the country may hamper industrial activities.
IKI said that high LNG price and low output from renewable power plants will make Thailand to increase demand for imported coal especially from Indonesia this year to minimize the freight cost.
Meanwhile, India’s thermal coal import is expected to be higher this year amid rising power demand and limited increase in domestic coal output. (To subscribe to the Indonesia Coal Report, please contact Petromindo’s sales division)
