S. Korea's coal import from Indonesia increases significantly

South Korea's imports of Indonesian coal may increase 67 percent this year as generators try to meet rising power demand and replace falling Chinese supplies, London- based shipbroker Simpson, Spence & Young (SSY) said in a report as quoted by Bloomberg.

Korean power producers may import 13.5 million tons of Indonesian coal this year, up from 8.1 million tons in 2003, the report said. Imports of Australian coal used for electricity generation may rise a quarter this year.

"South Korea has faced shrinking supplies from China at a time of rising import demand," SSY said. "Australian and Indonesian steam coal has replaced Chinese exports."

South Korean utilities are looking elsewhere for coal supplies as China has restricted coal exports this year in part because power demand surged as first-half economic growth of 9.7 percent spurred electricity use. The country's coal exports will fall to 86 million metric tons this year, 8 percent less than 2003, China National Coal Group Corp. said Monday. (*)