Coal Prices Near Record High Again... "Indonesia's Export Ban is the Cause"

Coal Price Trend in Newcastle, Australia. Photo by Ministry of Trade, Industry and Energy website capture

[Asia Economy Reporter Donghoon Jeong] Coal prices are once again on the rise, approaching record-high levels. This is expected to add pressure on industries that heavily use coal as fuel for power generation.

According to the Ministry of Trade, Industry and Energy on the 31st, the price of Newcastle coal from Australia was $248.64 per ton (approximately 301,227 KRW) as of the 29th. This marks an increase of $47.1 (23.4%, about 56,940 KRW) compared to the beginning of the year, and is close to the record high of $253.55 (approximately 307,175 KRW) recorded on October 15 last year.

Coal prices reached record highs last year due to carbon reduction policies and the resulting supply decreases. Although prices stabilized between November and December last year, dropping to around $150, they began rising again from early this year. Indonesia's ban on coal exports citing power shortages is considered a major cause.

Industries with high coal consumption, such as steel and power generation, are reportedly discussing internal measures in anticipation that the record high price may be surpassed.

This content was produced with the assistance of AI translation services.