China Coal Imports Expected to Fall on Indonesia Policy Swings

China’s coal imports are under pressure as policy swings in Indonesia — its biggest supplier — push up prices and complicate trade, forcing the world’s largest consumer to seek alternatives and boost domestic output.

Importsare expected to decline this year as Indonesia sets annual output quotas and centralizes commodities, potentially constraining exports, Li Xuegang, senior analyst at the China Coal Transportation and Distribution Association, said on Wednesday on the sidelines of the Coaltrans trade summit in Beijing.

China’s vast coal fleet plays the double role of ballast for China’s energy security and stabilizer in the shift toward renewables. Its ...