Chinese thermal coal futures fell on Tuesday after Indonesia, the world's biggest thermal coal exporter, eased a ban on overseas shipments that surprised buyers at the start of the year, alleviating concerns about supply disruptions.
The export ban was introduced after state power utility Perusahaan Listrik Negara (PLN) reported critically low coal stockpiles amid complaints miners were not fulfilling their responsibilities to supply fuel to the company. Driven by concerns about the impact to their economies which depend on coal-fired power generation, Japan, South Korea and the Philippines called for the measure to be eased.
Late on Monday, Indonesia agreed for 14 coal vessels to depart as soon as they got permits from authorities. To ensure PLN does not run low on coal again, the government is discussing new procurement policies, including a levy system for miners.