PT Bukit Asam Tbk (PTBA) will not immediately increase its export portion for this year even though global coal prices have risen sharply and continue to prioritise domestic needs, sindonews.com reported Monday (7/3).
Even though coal prices are on an upward trend, PTBA’s Managing Director Arsal Ismail said his company still prioritises coal for domestic needs. According to the company’s work plan and budget (RKAP), the company has the obligation to supply a minimum of 25 percent of domestic demand, especially for PLN.
Last year, coal sales volume was 28.37 million tons, up 9 percent. Of the total sales, 57% for domestic and 43% for exports. “PTBA as a BUMN is certainly not only pursuing profit, because we also have to pay attention to domestic needs. Last year the portion of sales for exports was 43%, this year the policy is relatively similar,” Ismail said in an online press conference Monday.
World coal prices increased sharply in the conflict that occurred in Europe, Business Standard reported Monday (7/3), and international coal prices were reported to have penetrated USD400 per tonne.
“With Russia’s invasion of Ukraine, there is an anticipation of lower supply of coal in the global market, thereby driving up the prices in the international market. Also another factor could be the rise in the price of alternate fuels like crude and natural gas,” said Rajnath Yadav, Research Analyst at Choice Broking.
With all global economies starting to open up to putting aside geo-political concerns, international coal prices are currently trading at USD459 per tonne, and are seen surging towards $478-$505 per tonne in the near term, said N.S. Ramaswamy, Head of Commodities at Ventura Securities.
Russia accounts for around 20 percent of the global thermal coal exports. Currently trading at $459 per tonne, with all the global economies opening up (sans geo-political worries), coal prices are seen shooting up towards $478-$505 per tonne in the near-term, said N.S. Ramaswamy, Head of Commodities at Ventura Securities.
“An ongoing energy crunch in Europe and Asia has been driving unprecedented demand for shipments of thermal coal from Australia, and (which) has boosted commodity prices to record levels.” (nsh)
