State-owned electricity provider PT Perusahaan Listrik Negara (PLN) starts commercial operation of 38 power plants with combined capacity of 2414 MW this year, most of which are coal-fired power plants built under the program from the previous government. Other than supporting reliability of electricity supply, these power plants would boost domestic consumption of coal.

Indo Tambangraya Megah (ITMG) booked net profit of US$23 million in the first quarter of 2016, dropped 39% from the corresponding period of 2015 due to falling coal prices and squeezed margins. Unlike Adaro Energy (ADRO), which also suffered from weak coal prices but reported higher margins, ITMG saw its operating profit margin declining 16%.

Crude palm oil (CPO) returned to US$715 per ton (CIF) in Rotterdam Monday (May 9) after retreating to US$705 late last week to tracking crude oil. That means the vegetable oil has stayed above US$700 for almost two months now. Weak output in April, combined with recovery of crude oil and soybean oil on Tuesday, might support further rally in CPO prices.

United States has cut its coal production by nearly 33% to 211.2 million short tons (MMST) in the first four months of 2016. Major coal producers like Anglo American and Glencore have also cut significantly their export of both metallurgical and thermal coal. Will they be enough to turning around coal prices in the seaborne market?

KPB Nusantara, the joint marketing office of state plantations, withdrew all of five CPO packages (7000 tons) auctioned off Monday (May 9) due to low bids. The benchmark July contracts of CPO, however, jumped RM33 to RM2661 per ton on the Bursa Malaysia Derivatives.

Malaysian company Kulim Sdn Bhd has agreed to extend the closing of the transaction to acquire 60% equity interest in PT Citra Sarana Energi (CSE), which holds oil and gas block in Sumatra, for another six months to November 6th, 2016.

PT Multi Tambangjaya Utama (MTU), coal concession holder controlled by Indika Energy (INDY), has recently signed a six-year US$108 million mining services contract with PT Mitra Abadi Mahakam (MAM). Indika said MAM is not affiliated to the group. So, who’s behind MAM? Will it help Indika, given price paid by the company in the acquisition of MTU?

State-owned oil and gas company PT Perusahaan Gas Negara (PGAS) Tbk booked net profit of US$101 million in the first quarter of 2016, down 8% from the corresponding period of 2015, but mainly because of significantly higher non-cash losses in foreign exchange translation.

Nickel returned to US$9460 per ton in London Metal Exchange (LME) Friday to tracking rally of commodities, while copper settled at US$5045 per ton after several days of corrections. Volatility remains out there, but charts point to bottoming out of commodities.