Indonesian coal exports face obstacles, leading to tight global coal market supply.

Indonesian coal exports have decreased due to declining river water levels, leading to critical low inventory levels at Indian power plants and a global rise in coal prices. Indonesia's production cut of 60% has redirected supplies to China and India, causing Indian power plant inventories to drop to critical lows, while coal power generation in Europe has rebounded but is constrained by physical limitations.

Why it matters. Global coal supply shortages affect the operations of Indian power plants, driving up coal prices, and impacting the energy market and power supply.