No Brakes! The price of coal continues to grow

Jakarta, CNBC Indonesia – The price of coal is still at home in the hiking trail. In trading on Wednesday (21/09/2022), the price of October contract coal on the ICE Newcastle market closed at US$ 448 per ton. The price rose 2.28% compared to the previous day.

The price is the third highest in history. This price is only behind the record high on September 5, 2022 (US$ 463.75) and the price on September 6, 2022 (US$ 451.25).

Today’s gain also extends the coal price rally that has been going on since Monday this week. In a week, coal prices rose 2% point to point. In a month, the price of coal rose 0.56% while in a year it jumped 151.3%.



The rebound in coal prices was caused by fears of supply disruptions due to flooding in Australia.

Reported from Argus MediaThe Australian Bureau of Meteorology announced yesterday that heavy rains are likely to hit parts of Australia on September 21-24. Heavy rains are also expected to cause flooding.

New South Wales, southern Queensland and Victoria are areas that are likely to receive heavy rain. In fact, Queensland and New South Wales are the main producers of Australian coal. Floods are also likely to inundate a number of areas near coal mines in Indonesia Narrabri and Boggabari.

Floods and heavy rains are likely to disrupt the mining process to coal shipments from Australia, even though Australia is the largest exporter for metallurgical coal and the second largest for thermal coal.

In March and May this year, floods also hit Australia and made coal prices soar.

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The surge in coal prices in the last three days was also supported by still high demand from Europe. Demand for coal from Europe is expected to remain high going forward in line with the re-operation of coal power plants and the approaching winter season.

Coal imports from the European region are expected to reach their highest level in four years by 2022.


[Gambas:Video CNBC]

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