Jakarta, CNBC Indonesia – Coal prices are still strong climb. The price of the black stone has now posted an increase for eight consecutive days.
Yesterday, the price of coal in the ICE Newcastle market closed at US$ 184.5/ton. Up 0.54% from the previous day’s closing position.
This increase fulfills the trend of coal price growth for eight consecutive days. During those eight days, the price shot up 26.59%, Incredible…
There are at least two factors that cause the increase in coal prices. One, after touching the peak on October 5, 2021, where the price reached US$ 280/ton, the price of this commodity fell to US$ 137.1/ton on November 2, 2021. There was a 51.03% correction.
After November 2, 2021, coal prices tended to rise and peaked yesterday with prices touching US$ 184.5/ton. So from November 2, 2021 to yesterday, the price has gone up 34.57%.
It is true that the price of coal has skyrocketed by more than 34%. But remember, the price had fallen more than 51%. So space for coal to print technical rebound still open.
Two, there is hope that coal demand will rise, especially in China. The property sector in Panda Country, which is being battered by the debt crisis, has received a stimulus from the government. For example, the government of President Xi Jinping ordered banks to boost lending to the property sector to reduce the cash flow pressure of Evergrande cs.
The rise of the property sector will increase the demand for steel. The steel industry is an energy-intensive industry, and the source of that energy comes from coal.
CNBC INDONESIA RESEARCH TEAM
(aji / aji)
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