Indonesian Coal Benchmark Price for July Highest in Last 10 Years
Reuters reported that Indonesia set its coal benchmark price at the highest in more than a decade, supported by sustained demand from China. The ministry set the benchmark coal price at USD 115.35 per tonne in July, higher than the USD 100.33 per tonne in June and the highest since USD 117.6 per tonne in May, 2011. Indonesia’s Energy & Mineral Resources Ministry Spokesman Mr Agung Pribad said “China's domestic coal supply capacity continues to run low while power generation activities resume. Demand also increased from Japan and South Korea. This has an impact on the increase in global coal prices.”
China unofficially banned imports from its top supplier Australia last year, with Chinese buyers informally told by custom officials not to purchase Australian coal. This has resulted in China looking elsewhere to source coal, making Indonesia's one of the biggest beneficiaries.