Jakarta, CNBC Indonesia – Coal prices are starting to stretch after collapsing. The price increase was supported by increasing demand from Asia.

Referring to Refinitiv, the ICE Newcastle coal price for the December contract closed at US $ 123.25 per ton or up 0.82% on Tuesday trading (7/11/2023).

This strengthening is good news after coal prices collapsed and touched the lowest level in 28 months or since June 16, 2021 on Monday (6/11/2023) at US$ 122.25 per ton.

Coal demand from Asia has started to rise in preparation for winter. As reported by Reuters citing Kpler data, coal imports by sea reached 75.77 million tons in October 2023, up 8% from 70.29 million tons in September. The number also jumped compared to October 2022 which recorded 69.63 million tons.

China was the largest importer with imports reaching 24.84 million tons in October, up from 23.59 million tons in September 2023. Total coal imports in the first 10 months of this year reached 383.64 million tons, up 66.8% from the same period in 2022. Su Haipeng, an analyst with CCTD, said the world’s largest coal importer’s coal imports could reach a record 460 million tons for the full year. On the other hand, some regions in China may experience electricity shortages this winter. This could slightly support coal demand this winter.

India’s thermal coal imports were 19.09 million tons, up from September’s 13.75 million tons. Demand from Europe edged up to 3.96 million tons in October, up from September’s 3.92 million tons.

Other positive news was also reported from India. The National Coal Index (NCI) rose 3.83 points to 143.91 in September. This was the first time the index strengthened since April 2023.
The NCI is an index that calculates coal prices from all sales channels, including auctions and imports. The index aims to determine the price of coal as well as its share in state revenues.

The Indian government explained that the rise in the index indicates an increase in coal demand ahead of the Dilwali festival season in India as well as winter preparations.


source : https://www.cnbcindonesia.com/research/20231108055628-128-487210/harga-batu-bara-akhirnya-menggeliat-dibantu-china-india

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