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Saturday, 14 August 10
INDONESIAN THERMAL COAL PRICES EXPECTED TO MOVE UP IN SEPTEMBER 2010 - CHAIRMAN ICMA


COALspot.com: Indonesian Coal Mining Association is expecting, the Indonesian and international coal prices will increase, and will be reached to US$ 102-103/ton in September 2010,  because of limited availability of coal in Indonesia due to unseasonable heavy rains.   Indonesian coal output may fall by 6 percent this year to 300 million tones because of  unusually heavy rains in coal production areas, reports said.

“I can’t predict anything, but the coal price might go up if any disturbance in coal production in Indonesia. We still wait a month to see the impact of the backlog to price,” said Bob Kamandanu, the chairman of the Indonesian Coal Mining Association to COALspot on Saturday.

The supply constraints from Indonesia could help to push the Australian thermal benchmark prices up to US$ 90/ton or more, after tepid demand from Chinese buyers, which driven prices of Australian thermal coal to down on Thursday to a six-month low of US$ 87/ton, reports said. Bob sees,  the drops of current international coal index (Newcastle index) because of less demand from Chinese buyers and industries. However, coal demand from India is still high, and it will never down in near future.

Indian demands for coal were increased drastically in recent years, and will increase further coming years due to high demand from coastal based existing and upcoming power plants.  Indian power plants are still needs coal, as they  haven’t secured fuel supply yet to their respective plants.
-- Efendi --
To contact the reporter on this news: Efendi in Jakarta at
efendi@coalspot.com



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