A worker walks past coal piles at a coal coking plant in Yuncheng, Shanxi province, China January 31, 2018. Picture taken January 31, 2018.
State-run Shanxi Coking Coal Group was the supplier in these transactions. Three sources reported that the company sold coking coal to China Risun Group, which later exported the material to Indonesia. Risun operates one of the largest coke-processing facilities in Sulawesi. Another cargo was sold to Hong Kong-based Jinteng Development Ltd, also destined for Indonesia, while a third shipment was delivered to a Dexin Steel plant in the region.
Shanxi Coking Coal, China Risun, and Dexin Steel have not provided public statements on the deals. The sources requested anonymity due to the sensitivity of the information.
Independent industry consultant Lawrence Yan noted that these shipments likely aim to evaluate the commercial viability of Chinese coking coal exports and signal to traditional suppliers that Indonesian processors have additional sourcing options. However, he indicated that high costs and strong competition from Russia and Mongolia may limit the long-term potential of such trade flows becoming routine.
In April, China exported 78,030 metric tons of coking coal to Indonesia—the first such shipment since July of the previous year. Customs data for May exports is not yet available.
An executive from the Chinese trading company Winsway suggested that if China’s steel production continues to slow, more domestic coking coal could become available for export, potentially making such shipments more regular in the future.
Indonesia’s coke-processing plants, particularly in Sulawesi, have become increasingly important in the regional metallurgical coke supply chain, a key material used by steel manufacturers. This has supported higher demand for coking coal. Indonesia's exports of metallurgical coke reached record levels in 2024, based on data from Kpler.
Despite the growth, one source mentioned that the Sulawesi coke sector is facing challenges due to overcapacity, with current utilization rates ranging between 60% and 70%. Compounding this issue are India’s import restrictions implemented in December, which have impacted Indonesian coke exports.
This development in China's coking coal trade highlights evolving dynamics in the regional supply landscape, reflecting shifting demand patterns, supply diversification strategies, and changing global trade flows in the steelmaking sector.
