Indonesia bans coal exports, and countries such as China are eager to find goods. Australia is the biggest winner. (Bloomberg profile photo)
[Financial Channel/Comprehensive Report]Indonesia has suddenly announced a ban on coal exports. As China accounts for more than 60% of Indonesia’s coal exports, Fitch expects that China may lift the ban and switch to Australia to purchase thermal coal, while Japan, South Korea and India are affected. The affected countries will also buy coal from Australia, and Australia will be the big winner of this wave of Indonesian coal bans.
The Australian Financial ReviewReportAccording to Fitch’s latest report, although Indonesia may eventually lift the coal export ban, Australia’s thermal coal export volume is second only to Indonesia. Now Indonesia’s coal export ban will continue for some time, and Australia will be the beneficiary.
Fitch pointed out that after China suspended Australian coal imports in December 2020, it may turn to Australia again to buy coal. Australia will also become the winner of this wave of Indonesian coal bans due to strong demand from Japan, South Korea and India.
The report mentioned that Australia has angered China due to its proactive investigation into the source of the Wufei virus. China has banned the import of Australian coal and resorted to a series of trade retaliation measures. It has also turned to Indonesia to purchase coal to replace Australian coal.
However, the demand for Australian coal in other parts of Asia is strong. It is estimated that Australia’s resource and energy export revenue will reach 379 billion US dollars in the 2021-2022 fiscal year, which is a great boon for Australian coal exporters.
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