Indonesia, the world’s largest coal exporter, is struggling to raise output and
cannot fully benefit from the coal-price rally as demand rises. DBX Commodities
says government cuts to mine quotas and low river water levels that restrict
transport have pushed Indonesian coal exports this month to a five-year low. The
IEA expects global coal consumption to hit a record high this year as countries
seek alternatives to reduced Persian Gulf gas supplies amid higher gas prices
and hot weather. Mohammed Fadhil, senior V-P at Argus Media, said: "Demand is
switching to coal but supply remains tight. Changes in Indonesian output and
exports could have a significant impact on the global market."
