Home > News > Industry News

Indonesia bans on coal exports will cause steel price to rise!


On December 31, 2021, the Ministry of Energy and Mines of Indonesia, in order to alleviate the current shortage of coal supply and prioritize domestic electricity demand, from January 1 to January 31, 2022, Indonesia will ban coal exports, including those that are currently installed and those that are not installed. The finished coal ships should be supplied to national power plants.

As the world's largest thermal coal exporter, Indonesia's ban on coal exports will undoubtedly have a major impact on global coal supply. According to statistics released by the Indonesian Bureau of Statistics, Indonesia exported 360 million tons of coal from January to October 2021, a year-on-year increase of 9.34%. It is expected that the annual export volume will exceed 400 million tons.

Indonesia is not only the world's largest exporter of thermal coal, but also a major importer of China's thermal coal. From January to November 2021, China imported 176 million tons of thermal coal from Indonesia, a year-on-year increase of 62 million tons, an increase of 54%, accounting for about 75% of China's total thermal coal imports.

This will have a collateral impact on China's coal and other bulk products. It may cause electricity prices to rise, power rationing and production restrictions, and increase the cost of steel in China, which will lead to an increase in the price of galvanized steel coil and aluzinc steel coil.