On February 14, coal futures price was at $245/ton, up 2.5% from the previous day and up 180.3% over the same period last year.
This is the highest level since October 2021 when the price of this commodity nearly touched 270 USD/ton. Prices rose amid high oil prices and a shortage of coal supply.
Coal futures price movements. Source: Trading Economics
Besides, the French government has also allowed power plants to use more coal in January and February to ensure energy security. The above factors caused a shortage of coal supply and pushed up prices.Indonesia, a major exporter, lifted the ban on exporting this commodity but focused on supplying domestic power plants. Only manufacturers that fulfill their supply responsibilities for the domestic market will continue to export in February, so the international market is still limited in supply.
Regarding the Chinese market, the country’s coal price has increased sharply since Indonesia banned exports. Although on January 21, the Southeast Asian country lifted the above order, but Indonesian businesses must focus on domestic supply.
The price of 5,000 kcal/kg grade increased from 93 USD/ton on December 31, 2021 to 116.1 USD/ton on February 10.
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