Coal prices closed with appreciation in yesterday’s trading. ICE Newcastle futures contract price rose US $ 1 or 1.19% to US $ 85 / ton. Last week, the coal contract price, which was actively traded on the futures exchange, fell below the US $ 80 / ton. Despite experiencing sharp volatility, coal contract prices will still strengthen by nearly 4% throughout 2021.
Coal Futures Contract Price
Some of the positive catalysts that triggered the rising trend of coal prices since last October was the commodity supercycle sentiment, the stretching economy of China, and the tight supply of Panda Country. The increase in global coal prices also raised prices and domestic coal stocks also strengthened.
Indonesian Reference Coal Prices
For February, Indonesia’s benchmark coal price experienced a sharp increase to the position of US $ 87.79 per ton or up 15.75% from the position in January 2021 which was pegged at US $ 75.84 / ton. The strengthening trend in coal prices since October 2020 has also made the share prices of the issuers move up. There are even some stocks that give thick returns.
PT Bumi Resources Tbk (BUMI)
For the first time in almost two years, the price of coal has reached US $ 90 / ton. This record price also made the stock price of PT Bumi Resources Tbk (BUMI), which is known to be calm, began to throb and no longer flat.
However, technically, coal stocks that are mostly traded (liquid) tend to form a double top pattern. This pattern indicates that the price of an asset tends to move downtrend (bearish).
China Boycotts Australian Coal
Despite the high volatility of coal prices, the average coal price will be higher than in 2020. The increase in coal prices will be a positive catalyst for the issuer’s financial performance and the movement of its shares.
Moreover, when China boycotted Australian coal products due to hostilities, the world’s largest coal consumer tilted even more to the country.