From Reuters via gCaptain:
China’s thermal coal futures surged by as much as 7.8% to kick off 2022 on concerns of supply disruptions after Indonesia, its biggest overseas supplier, banned exports.
The most-active thermal coal futures contract, for May delivery, on the Zhengzhou Commodity Exchange opened up 7.3% higher and is at 708 yuan ($111.10) a tonne, up 5.5%, at 0225 GMT, on track for its biggest daily increase since Nov. 25. The most-active May futures contract settled up 5.5% at 707.6.
The increase follows Indonesia’s announcement on Saturday banning coal exports in January because of worries that low supplies at its domestic power plants could lead to widespread blackouts.
China sourced 178 million tonnes of Indonesian coal, mostly thermal coal, in the first 11 months of 2021, accounting for more than 60% of its total coal imports, customs data showed.
The ban comes amid a tumultuous time for the coal market after prices surged to records last year because of falling Chinese supply that caused some regional blackouts. Zhengzhou futures climbed to a record 1,848 yuan on Oct. 19.
“Indonesian coal is mainly shipped to coastal regions in eastern and southern China and accounts for about 20% of the total supply in the region,” said Zhai Kun, an analyst at Guotai Junan Futures in a note....
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Previously (June 2021): "Indonesia and Coal"
Meanwhile, as we saw a year ago, China's ban on Australian coal (for questioning Beijing's covid origin story) has backfired spectacularly and is making the Australian miners more money than they ever thought possible:
"China's own goal on Australian coal ban gives traders a massive free kick" (Glencore smiles)
Ditto for China's attempt to destroy the Australian iron ore miners:
