Coal Price Almost Breaks US$ 400/Ton
Coal prices immediately skyrocketed at the beginning of the week. On Monday (4/7/2022) trading, the price of August contract stone on the ICE Newcastle market was in the range of US$ 391.45 per ton. This price jumped 4.4% compared to the market close on Friday (1/7/2022).
The strengthening of coal prices also brought the price of black gold closer to the psychological level by almost touching US$ 400/ton. The increase was the highest spike since June 23, 2021.
Overall, coal prices have strengthened 4.2% point-to-point in a week. Throughout the month of June, it recorded a slight increase of 0.2% while in a year it rose 184.2% year to year.
The strengthening of coal prices was triggered by soaring natural gas prices as well as European countries' steps to accelerate coal supply before the import ban from Russia which will be implemented on 10 August.
Coal trading analyst from a trading house from Switzerland said that coal prices still have the opportunity to rise, one of which is the demand from European countries in preparing energy sources for the winter there.
This indication causes coal prices to rise as countries in Europe, including Germany and Austria, have announced that they will resume operating their coal power plants after Russia cut gas supplies.
The strengthening of coal prices was triggered by soaring natural gas prices as well as European countries' steps to accelerate coal supply before the import ban from Russia which will be implemented on 10 August.
Coal trading analyst from a trading house from Switzerland said that coal prices still have the opportunity to rise, one of which is the demand from European countries in preparing energy sources for the winter there.
This indication causes coal prices to rise as countries in Europe, including Germany and Austria, have announced that they will resume operating their coal power plants after Russia cut gas supplies.
World coal prices flew back after being depressed during the second week of August trading. The price of black gold on Sunday (14/08/2022) shot up 16 percent point-to-point/ptp to US$403 per tonne from US$381 per tonne.
Bank Mandiri Industry Analyst Ahmad Zuhdi estimates that coal prices will move in the range of US$ 400-415 per ton this week. The issue of gas and coal supply in the European Union will be the main driving factor for black gold this week.
Coal is an alternative energy substitute for gas, so when gas prices soar, demand shifts to coal. This of course makes the price of the black gold go up.
In fact, Europe is still not free from the grip of fears of an energy crisis due to the shortage of gas supplies from Russia, as a result of the imposition of sanctions that began in early August.
Countries on the Blue Continent agreed to impose sanctions by stopping coal imports from Russia. The goal is to make the country led by President Putin lose money because its coal trading activities have stopped. The EU's Energy and Housing Committee estimates the Kremlin's losses from these sanctions at up to EUR 8 billion.
These sanctions are expected to make Russian coal exports rush to China and India. Meanwhile, Europe will import coal from Australia, Colombia, the United States, Australia, as well as from Asian countries such as Indonesia.