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Indonesian coal exports to China fell by 38% in the first half of 2015

Indonesian coal exports to China are suffering from the import restrictions and increased support to local miners imposed in China since 1 January 2015, and have been contracting by 49% since then, according to Chinese trade data. China has banned hard coal imports with more than 3% sulphur and more than 40% ash, as well as lignite with more than 1.5% sulphur and more than 30% ash. This measure contributed to a strong reduction in coal imports (-38% compared to the first half of 2014), to 76 Mt: Indonesian exports to China fell by 49% to 14 Mt, while Australia's exports to China declined by 25% to 34 Mt. Indonesian exporters, such as PT Bukit Asam or PT Adaro, had benefited from the strong increase in coal imports since 2012 and are now experiencing a neat contraction in trade. They have to find new markets, and supply could exceed demand in the sea-borne market from this year (up to 5.2% glut by 2018).