Price of low rank coal starts to rise
Friday, March 15 2019 - 02:35 AM WIB
The price of low rank coal in the international market has started to rise after China eases restriction on the import of the low CV coal, Bisnis Indonesia reported on Friday.
The paper quoted Executive Director of the Indonesia Coal Mining Association (ICMA) Hendra Sinadia as saying that the price of low rank coal with CV of around 4,200 kcal/kg has now hovered at around US$40 per ton compared to recent lows of around $30.
“There are plenty (of low rank coal have entered China) since February,” he said, adding that the rising price trend should be reflected in the government coal reference price in April.
He added that the Indonesian government decision to significantly cut down the country’s 2019 coal production has also contributed to the rising price trend. Indonesia is the world’s largest thermal coal producer.
Indo Hutabarat, CEO of coal firm PT Arutmin Indonesia, confirmed that demand for low rank coal from China and India have started to improved. (*)