Indonesia has set its October coal benchmark price at a record high of $330.97 per tonne, as demand from Europe rises, its energy ministry said on Monday.
The monthly benchmark price in Indonesia, the world’s biggest thermal coal exporter, rose from $319.22 per tonne in September. It also broke the previous record of $323.91 per tonne in June.
“The reactivation of coal power plants in a number of European countries has contributed to the rise of global coal demand,” the ministry said in a statement.
Coal buyers all over Asia, and some from Europe, joined an industry conference on Indonesia’s Bali island late in September to hunt for any coal supply they can secure ahead of winter. Global supply shortages and growing energy security concerns have driven an unprecedented rebound in coal demand.
Western countries have sought to move away from the polluting fossil fuel to slash carbon emissions but demand for coal has surged as governments try to wean themselves off Russian energy while keeping a lid on power prices.
Source: Reuters (Reporting by Fransiska Nangoy; Editing by Kanupriya Kapoor, Martin Petty)