July 6, 2020 Read More →

Renewable investments vary across globe with gaps still to fill

Coal Zoom:

Global coal prices will remain under pressure until the end of the year amid a persisting glut in supply and weak demand from China and India, analysts said.

“The market is currently oversupplied. Production, in particular in Indonesia and Australia, remains strong, but the demand is declining,” Hendra Sinadia, head of the Indonesian Coal Producers Association, told a Indonesian coal-industry webinar.

“This could make the coal price to continue its downtrend until the end of the year,” he said. 

Ghee Peh, a coal analyst with the Institute of Energy Economics and Financial Analysis (IEEFA), told the webinar demand from China and India – the two largest thermal coal importers – is projected to remain low until the end of this year, thereby keeping pressure on prices.

“The export market is going to be very difficult [for Indonesian coal producers] this year because India’s economy has been locked down and is only just restarting now,” he said, referring to government measures introduced to stem the spread of the Covid-19 pandemic.

China and India accounted for more than half of Indonesia’s coal exports last year. 

[Staff Reporter]

More: Analysts: Coal Prices to Stay Under Pressure Until Year End

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