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Coal industry expects further market improvement in Q3
Plans to develop a downstream mining industry in Indonesia to adapt to a long-term global shift in ore demand away from coal toward metals may also weigh on coal prices and demand over the decade.
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Heavy equipment is in use at an open-pit coal mine in Jambi in this undated photo. (AFP/Goh Chai Hin)
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ndonesian coal miners expect their financial performance to improve in the third quarter of this year, projecting that the upward trend in global coal prices will continue.
Indonesian Coal Mining Association (APBI) executive director Hendra Sinadia said growing demand for coal would come both from export markets and domestic industries as economic activity was recovering.
“The [coal] price will still be good in the third quarter, which means the profitability of our coal mining companies is expected to be much higher,” he told The Jakarta Post on Tuesday.
With regard to exports, Hendra added that the increase in the purchasing managers’ index (PMI) from coal-importing countries, such as China and Japan, pointed to a surge in energy demand for rising manufacturing activity.
However, Hendra declined to predict whether the upward trend in global coal prices would continue until the end of the third quarter. He did not rule out a correction in the coal price depending on various factors, including geopolitics and climate policies.
Plans to develop a downstream mining industry in Indonesia to adapt to a long-term global shift in ore demand away from coal toward metals may also weigh on coal prices and demand over the decade.
Read also: Outlook 2021: Govt to push downstream mining industry as coal, metals rebound gently
