Jakarta, CNBC Indonesia – Global coal stock prices have fallen over the past three weeks in tandem with world coal prices hitting the US$200 per tonne level for the first time since seven months ago. So is this the end of the dominance of coal stocks?
Prices of coal stocks such as ITMG, INDY and ADRO are down 29%, 20% and 15% respectively from their high prices. This is because the stock prices of the three have a positive correlation with global coal commodity prices.
The world coal price on Thursday (11/14/2022) was recorded at US$289.4 per tonne. While a month ago the price was still at the level of 400 US dollars per ton. The decline in coal prices is expected to occur in 2023 as the global recession reduces demand. Demand fell, prices followed.
Therefore, the decline in global coal commodity prices will have an impact on the stock prices of the three. Because most of the sales are exports.
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Photo: Refinitive
World coal prices vs coal inventories |
Fall of world coal
World coal prices fell 37.6% from a peak of US$463.75 per tonne. World coal prices have plummeted after being hit by various negative sentiments.
First, Covid-19 cases in China have exploded again, forcing Beijing to use a strategy ZeroCovid enhance mobility in a number of areas.
Reported by Reuters, China’s coal imports only reached 29.18 million tons in October 2022. This number decreased by 11.7% compared to September 2022, which was recorded at 33.05 million tons. In fact, coal imports from China usually increase in October, considering that this month is the period of replenishment of coal stocks.
According to, the drop in gas price also impacts coal considering that black sand is an alternative energy source for coal. The price of Dutch EU natural gas TTF (EUR) was up 4.23% on the day and 12.4% on the week at 113.14 euros per megawatt-hour (MWH) in yesterday’s trading.
Gas prices declined due to increased gas supplies in the European region and projections of warmer weather in Europe next winter.
Warehousing gas in Germany has reached 99% of capacity. Coal is an alternative energy source to gas, so gas development will also determine the price of black sand.
Coal storage at Europe’s leading port of ARA (Amsterdam, Rotterdam, Antwerp) is at its highest level in three weeks.
