Coal demand may grow 4-5%: ICMA

By Cepi Setiadi

The national coal demand is projected to grow by 4 to 5 percent this year but the growth in demand won?t much improve the supply-demand balance in the market as the national coal supply is projected to grow up to 12 percent, according to the Indonesian Coal Mining Association (ICMA).

"The national demand is projected to grow about 4-5 percent but the national supply can grow up to 12 percent," Supriatna Suhala, Executive Director of ICMA, said, adding the coal market will remain under pressure due to the oversupply.

Supriatna said that oversupply now holds in the global coal market due to exports from the U.S. The U.S. government, which prefers gas to coal, has stated there is no future for coal in the country, forcing the country?s coal producers to export their output to the Asian market.

Supriatna said that the national coal production may exceed 400 million tons this year as the country was able to produce in the excess of 200 million tons in the first half.

Editing by Johannes Simbolon