Coal futures rose to $61 per tonne at the start of November, not far from the highest since April 7th and after falling more than 3% in October, due to supply concerns and as Indonesia is expected to introduce soon a 10% value-added tax on coal. According to the Indonesia Coal Mining Association, coal exports are likely to remain below pre-pandemic levels in 2021. At the end of October, Glencore Plc, the biggest shipper of coal in the world, reduced its production target for the third time this year after facing an extended strike at a key mine in Colombia.
Still, the coal market is expected to remain under pressure amid growing natural gas-powered production and rising share of renewable energy generation as more countries try to move to more environmentally friendly energy. Japan’s PM Suga Yoshihide promised to reduce net emission of greenhouse gases to zero by 2050 and China promised zero emissions by 2060.