Jakarta, CNBC Indonesia – Coal prices fell again in yesterday’s trading. What’s wrong?
Yesterday, the price of coal on the ICE Newcastle (Australia) market was at US$ 172.35/ton. It’s down 5.9% from yesterday’s position and is the lowest since September 1, 2021.
profit taking (profit taking) seems to be the cause of the price correction of the black stone. Despite the downturn in the last few days, coal prices still posted an increase of 6.52% in the last month on a point-to-point. Since the end of 2020 (year-to-date), the price is still up 199.89%.
So, not suprisingly profit taking will always be a risk that haunts coal prices. Understood, how what you get is not ngadi-ngadi.
In addition, the Chinese government continues to intensify efforts to control coal prices. China’s National Development and Reform Commission (NDRC) is studying effective intervention efforts to control prices.
One of the efforts made was to raid locations suspected of being illegal coal stockpiles. According to the NDRC, there are many such places in major coal-producing regions such as Shaanxi Province and Inner Mongolia.
The NDRC vows to pursue illegal activities for personal gain such as hoarding. Therefore, the government will continue to close the illegal coal storage locations.
China really feels the impact of the surge in coal prices. Around 60% of power plants in the Bamboo Curtain country use coal as a primary energy source. The high price and the depletion of supply have forced a number of regions in China to carry out rotating power cuts.
CNBC INDONESIA RESEARCH TEAM
(aji / aji)
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