Mandiri predicts coal price at $75 -78 per ton in 2017

By Adianto P. Simamora

A recent decision by President Donald Trump for the US to withdraw from the Paris Agreement on climate change could potentially increase the use of coal in that country, which would eventually lead to an increase in global coal price, an analyst said.

?We predict coal price hovering at between US$75 -78 per ton (New Castle 6000 kcal/ton) this year, higher than last year?s average (of $65.7),? Dendi Ramdani, Department Head of Industry & Regional Research at PT Bank Mandiri Tbk told Petromindo.com on Monday, in response to the Trump?s latest policy on the Paris Agreement.

Mandiri previously predicted that the 2017 coal price would average at $77.1.

Dendi, however, warned that China?s government policy to progressively increase its domestic coal output may disturb the global supply as China?s demand on coal is not stable yet.

Editing by Reiner Simanjuntak