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Jakarta, CNBC Indonesia – There are many positive sentiments that keep world coal prices rising. Starting with the development of the Covid-19 vaccination, the relaxation of China’s import policy until the recovery of demand from major markets such as India.
In yesterday’s trading (12/15/2020) the price of the futures contract or futures Newcastle thermal coal closed 0.78% higher at US $ 84.5 / t. At the current level, the price of coal is still at the highest position in the last year and a half.
By month to date (mtd) coal prices have increased by 20.8%. When it was withdrawn even further, during the year the price of the slate has risen 22.38%.
Pascarelaksasi emergency shutdown Coal imports from India tend to increase. Emergency shutdown in India, limited economic activity. The consumption of electricity and steel has been reduced. As a result, the demand for imports has fallen.
As for China, the price of domestic thermal coal is moving further away from the ceiling set by the government. Referring to Refinitiv data, the price of Qinhuangdao thermal coal 5,500 Kcal / kg has reached the level of RMB 693 or the equivalent of US $ 105.91 / ton.
China’s supply shortage has led it to relax its import policy. Recently, the National Development and Reform Commission of China (NDRC) told power plants to import coal without permit restrictions, except for Australian coal.
Canberra-Beijing are really tense. Spotting discrimination Australian Trade Minister Simon Birmingham said he would do everything possible to uphold the trade rights of Kangaroo Country.
Australian Prime Minister Scott Morison also responded to the news. According to him, China’s policy of switching Australian coal will only cause losses to both parties.
Although both argued, the relaxation of Chinese coal imports was a positive sentiment for other producers such as Indonesia, one of them.
News of the emergency Covid-19 vaccination taking place in the UK and the US, which will soon follow, has also increased the optimism of market players. The combination of all this makes the price of coal soar.
CNBC INDONESIA INVESTIGATION TEAM
[Gambas:Video CNBC]
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