Home » Business » Unfortunately Your Fate O Coal, Total Ambrol!

Unfortunately Your Fate O Coal, Total Ambrol!

Jakarta, CNBC Indonesia – Along with lower oil prices this week, world coal prices have been under pressure for a week, following an investigation by the Chinese government to control prices.

Newcastle’s benchmark thermal coal price for futures contracts (futures) which was heavily traded at the price level of US$ 223.45/ton on Friday (31/10/2021), or jumped 3.1% from the previous day’s position.

However, on a weekly basis, the closing level fell 2.85% from last Friday’s position which was at the level of US$ 225.75/ton. This week’s correction continues the previous week’s price decline which reached -4.2%.

This week, the coal market tends to be depressed due to investors’ profit-taking that occurred on Wednesday and Thursday, thus triggering a correction in coal prices by 15.7% and 4.7%, respectively. coal fell 20.4%,

Throughout the current year, the price of Indonesia’s mainstay commodity skyrocketed 173.3%, from the position at the end of last year which was only US$ 81.75/ton. The highest price record was reached on October 5, which was US$ 295/ton. As of this record position, coal prices have fallen by 30%.

Throughout October, the price of Indonesia’s mainstay commodity increased by 2.97% compared to the position at the end of September of US$ 217 per ton. The trigger for the increase was none other than the energy crisis in Europe and China which triggered massive coal buying.

On the other hand, China’s energy demand is still high amid a supply shortage, especially amid political tensions between the Panda Country and Australia, after the Kangaroo Country accused China of being the culprit of the Covid-19 pandemic. As a result, China stopped buying coal from Australia.

Prices began to correct after China’s National Development and Reform Commission (NDRC) investigated complaints that energy information companies, including coal, used fraudulent transactions, published rumors and fabricated prices to manipulate actual price movements.

In the long term, coal prices are predicted to weaken due to the trend of shifting towards renewable energy. The momentum of the energy shift from fossil energy to renewable energy reached its peak this weekend with the climate change conference in Glasgow, England.

But in the short term, the rally is likely to continue because China’s energy crisis is predicted to spread to Japan. The price of electricity in Japan has risen to the highest level in the last 9 months due to the surge in global prices of oil, liquefied natural gas, and coal.


[Gambas:Video CNBC]



Leave a Comment