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Global coal prices projected to remain healthy in 2018

Coal News - Published on Wed, 07 Mar 2018

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The Jakarta Post quoted World Coal Association as saying that global coal prices are expected to remain healthy throughout 2018 owing to stable demand from China and increasing consumption in India. Mr Benjamin Sporton chief executive WCA projected that demand from China would continue to be reasonably strong this year, despite the country’s plan to implement a huge gasification program for households and industries to reduce its dependence on coal.

Furthermore, Mr Benjamin said that India would also increase its coal imports amid soaring demand from its power generation sector and lower-than-expected domestic production.

Mr Benjamin told The Jakarta Post recently that “India is not in a shortage situation, but it is running very closely behind it, and that’s really what has driven coal exports into India, and a good chunk of that is coming from Indonesia.”

The price of Asian benchmark Newcastle thermal coal had climbed to USD 106.78 per tonne in January after falling to as low as USD 74.52 per tonne in May last year.

Mr Benjamin said that “It’s really the supply constraint that sent the price to above USD 100 per tonne over the last year, and I would still expect it to be somewhere in that ballpark for most of this year.”

The Indonesian government has limited the country’s coal production in 2018 at a maximum level of 485 million tonnes, 25 % of which will be allocated for the domestic market.

Within the first two months of 2017, Indonesia’s coal production reached 28.07 million tonnes, 15.6 million tonnes of which were absorbed by the domestic market.

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Posted By : Nanda Koijam on Wed, 07 Mar 2018
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