High global stock and the pandemic bring down Indonesia’ coal prices in the last five months. Based on the energy and mineral resources (ESDMR) ministry data, in August, the average coal prices is set at US$50.34 per metric ton (MT), dropped 3.49% compared to July a $52.16 per MT of coal.
The decline in August due to the COVID-19 which has resulted in falling demand in several coal importing countries, while coal stocks in the global market have also increased,” said the ministry.
The decline in global coal prices was also triggered by the policies of China and India which prioritized the use of coal produced domestically, said the ministry. Indonesian official sees the domestic coal price will be lowering to $59 a MT of coal until the end of 2020 caused of various factors.