X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 4 minutes IMPORTANT ARTICLE BY OILPRICE.COM EDITOR - "Naked Short Selling: The Truth Is Much Worse Than You Have Been Told"
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 14 mins Texas forced to have rolling black outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 11 hours Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 18 hours NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 2 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 4 hours Retired RAF pilot wins legal challenge over a wind farm
  • 21 hours The latest GOP nonsense on Texas shows us the future Republicans want
  • 2 hours Minerals, Mining and Industrial Ecology
  • 20 hours Disaster looming in UK offshore wind power
  • 1 day The Cyberpandemic has Begun: SolarWinds + FireEye – Gmail & Google services down
  • 22 hours U.S. Presidential Elections Status - Electoral Votes
Foreign Coal Producers Get Boost From Coronavirus

Foreign Coal Producers Get Boost From Coronavirus

International coal trades are priced…

The Secret To Successfully Closing Down Coal Plants

The Secret To Successfully Closing Down Coal Plants

Closing coal-fired power stations in…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Is The Coal Market Finally Capitulating?

If you're a coal investor, there's one piece of data you need to see this week.

New production figures from world-leading exporter Indonesia.

Data released by the Indonesian government this week showed a huge drop in mine output for the first quarter. With overall coal production falling 21% as compared to the first quarter of 2014. Related: The Real History Of Fracking

That equates to a loss of 27 million tons of coal supply. Suggesting that Indonesia's overall output could fall by around 100 million tons this year.

That's a critical observation for the global coal market. Being the first major drop in output we've seen from Indonesia since coal prices started their steep decline in 2011. Up until now, Indonesian production had reportedly been continuing to rise -- as miners tried to compensate for lower sale prices by putting out more product. Related: Huge 100 Billion Barrel Oil Discovery Near London

If a trend toward lower production here holds, it would be a sign that the global coal market is finally capitulating under low prices. And a fall in Indonesian production would be a big step toward getting the market balanced again -- given that the nation is by far the world's largest exporter, especially for key consuming countries like India, China and Japan. Related: Event Horizon: Major Catalysts In These Commodities This Year

One point of caution here is that Indonesia's production statistics are notoriously unreliable. With the numbers often being revised after the fact, due to factors like uncounted output from illegal mines. Indeed, the chairman of the Indonesian Coal Mining Association, Pandu Sjahrir, said he is waiting for confirmation of the government stats before commenting further on the state of Indonesia's mines.

At the very least, this is a happening to put on our radar screens. Watch for further data coming out of Indonesia to confirm this critical trend.

Here's to coal, hard reality,

Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News