Jakarta, CNBC Indonesia – The price of coal is always in the house on the hiking trail. In Monday’s trade (28/11/2022), the price of coal for the January contract on the ICE Newcastle market was recorded at US $ 368.5 per ton. Coal prices increased by 2.13%.
With this increase, the price of black sand has strengthened in eight consecutive trading days. During these eight days, coal prices jumped 16.6%. This increase is certainly a boon for Indonesia, which depends on coal as its main export.
In one week, the price of coal jumped 5.5%. point to point. Sand prices are still down 1.5% month but still up 136.2% year.
Reinforced coal supported by increased demand ahead of winter. Reported from S&P Global, market participants expect demand to increase as the winter season will peak in the coming weeks. On the other hand, there were supply disruptions in Indonesia and Australia due to weather problems.
The increase in coal demand was even reported by the UK and Germany. Reported from the times, The UK imported 560,000 tonnes of coal in October 2022, an increase of 93% compared to the same period last year.
Overall, the UK’s total coal imports exceeded 5.5 million in January-October 2022. This amount exceeded the total imports for the whole of 2021, namely 4.6 million tonnes.
Coal orders are increasing as Europe faces colder temperatures ahead. Reported from Bloomberg, Maxar Technologies Inc. expects temperatures in Europe to be colder than predicted before December.
It is feared that the cold temperatures will increase the use of electricity so that the energy supply will become smaller. Maxar predicts temperatures across much of Europe will be cooler in the next two weeks.
The temperature in Berlin is expected to reach minus (-) 3.5 degrees Celsius on December 3rd. Temperatures in major European cities such as Amsterdam, Helsinki and Stockholm will also be colder than normal.
In the autumn of this year, the temperature in Europe is warmer than in previous years so that the region can reduce the use of gas.
Gas storage in Europe is now on average around 95%. The supply is expected to run out quickly in the next 10 days.
CNBC INDONESIA RESEARCH TEAM
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