The downward trend in coal prices has occurred in recent times. However, business actors are optimistic that the coal industry can still score positive performance this year. Chairman of the Association of Indonesian Energy, Mineral and Coal Suppliers (ASPEBINDO), Anggawira, said that the recent decline in coal prices was influenced by a number of factors, including the weather in Europe and fears of a global economic slowdown.
According to him, the weather in Europe is not as cold as the initial prediction or in previous years. "So (coal) consumption has decreased. That's one factor," said Anggawira to Kontan, Sunday (29/1). Anggawira continued, there were concerns over the global economic slowdown which had an impact on the decline in coal prices. However, this condition is considered not to have a significant impact. Moreover, a number of business actors are generally bound by contracts with relatively high coal prices.
On the other hand, China's move to start importing coal from Australia has also had an impact on coal price movements. Anggawira explained, it was necessary to ascertain how large the volume of coal from Australia was sent to China. In addition, this condition is considered not to have much impact, especially for a number of other countries, it is believed that they will not fulfill their supply from Australia given the high cost of cargo.
Source: https://industri.kontan.co.id/news/aspebindo-optimistis-bisnis-batubara-bakal-tetap-positif-pada-tahun-ini
