Indonesia’s Ministry of Energy and Mineral Resources (EMR) said the country’s benchmark coal price has set its highest level in more than a decade as demand skyrocketed in China, South Korea and Europe.
EMR fixed the reference coal price (HBA, as the basis for this country’s coal production and trading enterprises to offer) in September at 150.03 USD/ton, up 14.53% compared to 130. 99 USD/ton in August.
This is the highest level since peaking at 116.65 USD/ton in November 2011.
In a statement, EMR spokesman Agung Pribadi said increased electricity demand in China is outstripping the country’s domestic coal production capacity.
According to him, coal demand has skyrocketed in South Korea and Europe as gas prices have increased in those regions.
Data from the Dutch exchange TTF shows gas prices in Europe standing at 38.65 euros ($45.91)/MWh on July 6.
Nick Campbell, director of consulting firm Inspired Energy, said prices were high due to record low gas inventories, field shutdowns, protracted production problems and active customer buying. Asia.
The HBA, at $89.74 a tonne in May, rallied sharply after falling to a record low of $49.42 a tonne in September 2020 amid reopening economies, fueling an increase demand for electricity. HBA hit a nearly three-year high in June.
Hendra Sinadia, executive director of the Indonesian Coal Mining Association (APBI), said the price increase was also due to limited supply in the context of Australia and Indonesia – the world’s two top coal exporters – in the rainy season.
Meanwhile, Chinese coal importers also have difficulty importing Australian coal in the context of less favorable relations between the two countries.
Hendra forecast coal prices will continue to rise, and said APBI is continuing to closely monitor weather conditions, Australia-China relations, and the possibility of an increase in the US Federal Reserve (Fed). interest rates gradually in the coming months.
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