Coal price continued to decline from its record high set in early March as the Covid-19 restrictions in China hurt transportation, which led to an increase in coal inventories at mines amid dampened demand.
Newcastle coal futures dropped slightly further by 1.52% to $325/MT, a new low in three weeks after setting a record high earlier at $422.65 on March 7. Meanwhile, China’s coal output rose 10.3% from a year earlier in the first two months of this year after the government requested operators to increase production for the winter season.
Still, coal prices are nearly double this year, considering closing 2021 at $169.60/MT. Meanwhile, the ongoing war between Russia and Ukraine could potentially fuel the price.
The share price of Banpu Public Company Limited (SET: BANPU) is still up by 2.75% in March, while The Lanna Resources Public Company Limited (SET: LANNA) is 1.04% higher in March. However, Asia Green Energy Public Company Limited (SET: AGE) is minus 6.75% for the month.
