Jakarta, CNBC Indonesia – World coal prices skyrocketed 85.63% so far this year and closed at US$ 151.75/ton. The price of black gold had reached an all-time high of US$ 280/ton in October.
The high price of coal cannot be separated from the recovery of the world economy which has caused the demand for coal to increase. Even though production is still trying to recover from the hit of the pandemic since 2020. The imbalance in the coal market has caused prices to skyrocket throughout 2021.
In 2021 coal prices will be further lifted by demand that exceeds supply in China – a determinant of global coal prices – as well as by supply disruptions and higher natural gas prices globally. China’s coal demand rebounded more than 10% in the first half of 2021, but production did not offset in part as many mines had closed in previous years amid government concerns of oversupply.
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Foto: Refinitiv coal- – |
The International Energy Organization (IEA) estimates that coal demand in 2021 will grow 6% compared to 2021 to 7.9 billion tons. The increase is the same as that which occurred in 2010, after the global financial crisis.
Most of the increase in 2021 will come from three countries namely China, India and the United States (US). The use of coal in these three countries has skyrocketed because of the significant increase in power generation.
China’s coal consumption is expected to increase by 159 million tonnes(+4%). Meanwhile, demand rose by 125 million tonnes (+13%) in India and 74 million tonnes (+17%) in the US.
Coal consumption in 2021 is also expected to recover in other regions, including the European Union, which rose by 45 million tons and Southeast Asia, which rose by 14 million tons.
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