Commodity Insights

Indonesia has benefited from China’s ban on Australian coal

Indonesia has benefited from China's ban on Australian coal

The repercussions for China has been to secure more low quality coal to offset high quality Australian coal.

China’s import ban on Australian coal has had repercussions on global coal markets in 2021, with huge redistributions of trading volumes by market participants. Indonesia, the world’s largest thermal coal exporter, has been one beneficiary, with average monthly volumes to China increasing 50% (see chart below). In 2020, China accounted for 31% of all Indonesian exports, which has surged to 44% in 2021.  

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