Press Release

Fresh wind hit the world back in the coal business. After plunging since March 2015, the price of black gold continues to climb. Lastly, citing Bloomberg (8/7), the end of the first semester of 2016, or June, the price continued to rise to 25.16 per cent, to US $ 60.55 per metric ton. However, coal prices for August delivery on the ICE Futures Exchange had fallen 0.08 percent to US $ 59.85 per metric ton.

Central Capital Futures analyst, Wahyu Tri Wibowo was quoted as saying kontan.co.id yesterday (11/7), explained that the increase was due to the recovery of world oil prices. In contrast, natural gas prices soar as markets increasingly prefer coal is cheaper. This situation brings fresh wind to the increase in energy commodities black gold.

"There is no record still ongoing reduction in production by a number of major producers of coal. However, the weakening of the US dollar akibar dimming of interest rate hikes the Fed tipped to boost demand (coal) while," said Wahyu.

Meanwhile, it was reported coal production in Colombia and Indonesia continue to see cuts. In contrast, imports from South Korea and Japan increased. China also has plans to cut production to 500 million tons in the next three-five years to secure the coal mine development project in the country.

The impact, China experienced its lowest point since April 2015 in the coal production of 268 million tons, down 11 percent. It is rated to boost coal prices to the highest level by July 4, 2016 of US $ 60.55 per metric ton.

Furthermore, Wahyu predict future coal prices will move within a narrow range. Although the chances to maintain the price is still there, but it will not change much from current levels. "The average price of coal in 2016 is US $ 55.00 per metric ton," said Wahyu.