The global metallurgical supply chain underwent a significant restructuring in 2020, driven by China's dual-carbon strategy and energy consumption control policies, which tightened capacity expansion in the coking sector. Coupled with the ongoing COVID-19 pandemic disrupting international supply chains, this created a pivotal moment for industry realignment. Against this backdrop, Nanjing Iron & Steel Group, Delong Group, and CHINA RISUN GP (01907) partnered with Tsingshan Group to establish operations within the Indonesia Morowali Industrial Park (IMIP). Their collaboration has culminated in the largest coking capacity project in industrial history, forging a new global landscape for the coke industry.
IMIP is a flagship project under the China-Indonesia "Belt and Road" initiative. Located in Morowali Regency, Central Sulawesi, Indonesia, the park spans over 4,000 hectares with a cumulative investment exceeding $34 billion. It has evolved into the world's most extensive and integrated production base for stainless and carbon steel, encompassing the entire chain from raw ore to finished industrial products. The park also hosts industrial clusters for new energy battery materials, electrolytic aluminum, alloy smelting, coking, and power generation. It is home to over 50 companies and employs more than 100,000 people.
Four independent coking projects—Risun Weishan, Detian Coking, Jinxiang Coking, and Jinrui Coking—represent a total investment of over $3 billion, covering an area of 3,350 mu. Planning and construction began in late 2020, with operations commencing progressively by July 2023. As of May 2026, the park has achieved an annual coke production capacity of 12.7 million tons, with sales for 2026 projected to reach 10.5 million tons. The products are exported to more than 50 countries and regions, supplying high-quality coke to 83 steel mills. This output constitutes over 50% of the international coke trade volume outside China and 80% of the coke trade within India and Southeast Asia, generating annual output value surpassing $3.5 billion.
The operation of IMIP's coking projects has created synergistic and complementary effects with numerous other industrial chains within the park. It enables the comprehensive and efficient utilization of various energy resources, including coke, electricity, gas, and chemical by-products. Currently, the four coking enterprises supply 360,000 cubic meters per hour of clean gas to 24 other companies in the park. This has reduced carbon emissions by approximately 50% compared to traditional energy sources. Beyond providing robust clean energy support, it directly and indirectly fosters green, low-carbon production processes, significantly enhancing the global market competitiveness of various products.
Approximately one-third of the coal feedstock for the IMIP coking projects is sourced domestically from Indonesia. The process transforms coal valued at just over $100 per ton into coke worth more than $300 per ton and chemical products exceeding $500 per ton. This value addition directly elevates Indonesia's overall industrialization level and provides employment for nearly 5,000 Indonesians.
As the projects have come online, a global procurement network for raw coal has been established. The park annually sources 22 million tons of washed coking coal from 11 countries, 50 mines, and over 80 coal varieties, accounting for nearly 10% of the international seaborne coking coal trade outside China. Through mechanisms like long-term price agreements and a combination of futures and spot trading, the project has broken from traditional pricing models, effectively controlling raw material cost volatility.
The IMIP port handles an annual throughput of 150 million tons. The 15.6 million tons of coke and 22 million tons of coal leverage five dedicated 100,000-ton berths. The coking companies' strategic "mountain-backing, sea-facing" layout with "port-front and factory-rear" logistics maximizes efficiency. This configuration has improved logistics turnover efficiency by about 70% compared to traditional sea-plus-land transport models.
The progressive commissioning of Indonesia's coking capacity has had a profound impact on global trade flows. China's coke exports have decreased from 7.5 million tons to 4.5 million tons. Japan has announced the shutdown of 3.5 million tons of coke oven capacity, reducing its exports from 1 million tons to less than 100,000 tons. Colombia's coke exports have also fallen, from 4 million tons to under 3 million tons.
Concurrently, the project has significantly influenced international coke pricing. Indonesian coke prices have become a key benchmark in the global market. Furthermore, through superior quality and professional service, Indonesian coke has achieved a product premium. Its price, which was $20 per ton below Chinese export coke in 2023, rose to $15 per ton above Chinese export coke by 2026.
The full operation of IMIP's 15.6 million-ton coke capacity marks a historic turning point in the global coke industry. The project has not only directly altered the global supply-demand geography by reshaping trade flows but has also compelled steel-producing regions in ASEAN, Japan, India, Europe, and South America to adjust their domestic coke industry strategies due to its integrated cost and logistics advantages. In the wave of global industrial chain restructuring, Indonesian coke, through its new paradigm of scale, intensification, high efficiency, strong synergy, and global resource allocation, has fundamentally rewritten the competitive rules and development trajectory of the global coke industry, heralding the dawn of a new era.
CHINA RISUN GP operates six coking parks in China. Combined with the Risun Weishan coking park in Indonesia, its total capacity reaches 20 million tons. Adding 4.9 million tons of capacity under trusteeship management, the group's overall coke operation scale stands at 24.9 million tons, making it the largest supplier of coking products in China and globally. Simultaneously, the group manages three chemical industrial parks, with four of its seven coking parks concurrently developing chemical industries. Through the integrated development of coal chemical and petrochemical sectors, it has realized a unique "Coke + Coal Chemical + Petrochemical" business model. Supported by an integrated management system encompassing "Sales, Logistics, Production, Supply, and R&D," the group has established a one-of-a-kind industrial survival and development model worldwide.
Comments