Jakarta, CNBC Indonesia – The price of coal is still climbing the hiking trail. The price of the black stone has gone up for five consecutive trading days.
Yesterday, the price of coal on the ICE (Newcastle (Australia) market) closed at US$ 165.95/ton, up 1.65% compared to last week.
The upward trend in coal prices has not been interrupted, now it has occurred five days in a row. During these five days, the price of this commodity shot 14.76%. Wow…
Developments in China seem to be coloring the coal market again. The Chinese government is intensively raiding illegal mines in a number of coal producing areas.
The Shanxi Province Mining Security Agency conducted a large-scale inspection to crack down on illegal mines. The agency also asks producers to maintain production levels according to the target. Jinneng Group, China’s eighth largest coal producer, was found to be dredging coal for less than its set production capacity.
“Jinneng Group has agreed to increase production and suspend all forms of mine maintenance,” the Shanxi Provincial Mining Safety Agency said in a statement.
However, there are at least 14 other mines producing more coal than specified. Two of them have been ordered to close the mines, each with a production capacity of 900,000 tons/year.
Nah, this development has made market players worried that the supply of coal will be tight. No wonder the price of coal ‘soared’.
CNBC INDONESIA RESEARCH TEAM
(aji / aji)
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