Coal Prices Are Increasingly Scorching

Coal prices recorded their highest record in four months. The increasingly hot coal prices are influenced by high demand from Asia. It was also influenced by uncertainty about Australia’s Liquified Natural Gas (LNG).

According to cnbcindonesia.com, this extends the positive trend in coal. Coal prices have risen 0.73% in the last trading week. In the last two trading days, coal prices flew 1.7%.

Coal movements are greatly influenced by China as the largest producer and consumer in the world. China’s demand has the potential to increase before the long holiday on September 29. Especially the demand by industry to maximize its production capacity.

The increase also occurred here in Indonesia. CoalMint noted that Indonesian coal experienced a surge in demand, amid ship cargo. The increase in Indonesian demand adds to the long list of coal demand in Asia.

Meanwhile, the LNG issue has contributed to a spike in coal prices. Europe relies on gas as its energy source. However, gas supplies are threatened with disruption due to a strike at the Western Australian LNG facility. To deal with this problem, Chevron is maximizing LNG production at the Wheatstone facility.