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There was ‘Near Death’, coal prices now up 14%

Jakarta, CNBC Indonesia – Coal prices continue to rise in line with rising gas prices. During trading on Tuesday (15/11/2022), the price of coal for the December contract on the ICE Newcastle market was recorded at US $ 330 per ton. The price jumped 6.8%.

This price is the highest since November 7, 2022 or last week. The price boost also extends the positive trend in coal prices that has risen since last Friday.

The return of the coal stretch in the last two days was beyond the projections of many people. This is because the price of black sand has been declining since mid-October 2022. Coal prices have been eliminated from the psychological level of US$400 per ton since October 13, 2022.

In early November 2022, coal prices themselves fell into a state of suspended animation and did not have the energy to rise. Coal prices weakened for six consecutive trading days on November 3-10 2022. The price fell 20.2% during these six days of weakness.

nonetheless, the price of black sand rose last Friday to Tuesday this week. In three trading days, the price of coal jumped 14%.

The revival of coal prices was supported by sharp increases in European natural gas prices. Fuel prices continue to rise due to concerns about supplies ahead of winter. Coal is an alternative energy source to gas for the price goes hand in hand.

The wave of gas prices was even able to erase many negative feelings towards coal, starting from the slowdown in the Chinese economy to the agreements of many countries to increase the portion of green energy and get rid of coal.

The European Union Dutch TTF (EUR) price of natural gas jumped 9.2% on the day in yesterday’s trade to 124.10 euros per megawatt-hour (MWh). Gas prices rose 5.04% for the week.

The rise in gas prices was also triggered by disruptions in Norway’s LNG shipments to Europe. Two Norwegian-owned gas facilities in Asgard stopped operating after experiencing a fire on Sunday (13/11/2022).

The new facility is expected to be operational by November 19 at the latest.

LNG shipping from the United States (US) was also disrupted after LNG producer Freeport suspended refinery operations in Texas. The refinery has stopped operating since June 2022 there was an explosion.

The United States is the biggest supplier of LNG in the world, where its contribution reaches about 20% global. The problem with the Freeport refinery has again raised concerns about gas supplies in Europe, causing gas prices to rise.

Weather forecast agency Maxar Technologies LLC predicts European temperatures will drop this week. The temperature in Berlin, Germany, is even expected to be below 0 degrees Celsius.

NatGas Weather.com also reported that the temperature in the US will be colder until November 20. In some areas it may even be less. This condition will increase the demand for natural gas in the United States, which will also increase the price of natural gas in the world.

The supply of gas in Europe has indeed reached 95% of capacity but if the air temperature falls then the use of heating and gas will increase so that the supply can run low.


[Gambas:Video CNBC]

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