The price of thermal coal in global markets has increased to over $145 per ton. This price increase is due to a severe reduction in supply and an increase in demand for coal as an energy source following disruptions caused by global gas crises. Since the onset of tensions in the Middle East, particularly in Iran, various countries have turned to greater use of coal for electricity generation.
Decrease in Indonesian Coal Exports
Indonesia, as the largest exporter of thermal coal in the world, has witnessed a 23% decrease in its exports in August of this year compared to last year. This export level has reached its lowest point in the past five years, with multiple factors contributing to this decline. These factors include production quotas set by the government, policy uncertainties, and the effects of the El Niño phenomenon.
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Increase in Demand for Coal
According to forecasts, global demand for coal is expected to significantly increase this year, reaching a new record. This increase in demand is particularly noticeable in countries like China, India, Japan, and South Korea. These countries have turned to coal for electricity generation due to rising prices of liquefied natural gas (LNG) and disruptions caused by the blockage of the Strait of Hormuz. According to the International Energy Agency, this shift in energy policies could have significant economic and environmental consequences.
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