Coal Prices Down Due to Influence Import India
"Because oil prices are bearish, fuel users also started to leave the coal," said Apelles RT Kawengian, Division Head of Business Development and Product Monex Investindo Futures, Thursday (12 / 5).
As the substitution of crude oil, coal price movement would correlate with the rate the price of black gold. Oil prices are still moving fluctuated below $ 100 per barrel in the past week.
The contract price daily West Texas Intermediate crude for delivery in June 2011 in New York trading on Friday (13 / 5) 14:00 pm, was down 0.12% to U.S. $ 98.77 per barel.Tapi at 16.30 pm, the price of oil WTI rose to U.S. $ 99.85 per barrel.
Abraham, senior analyst Harvest International Futures, added, declining coal prices because of statements allegedly Indian coal imports from South Africa also declined.
India is one of the largest coal-consuming nation in the world. Indian demand for coal collapsing because the local authorities to tighten monetary policy. It's known, the rate of inflation in India is quite high. "Inflation in India during April for about 9%," added Ibrahim.
India's central bank also raised its benchmark interest rate to be 6.5% after holding the rate of inflation. In the third quarter later, Ibrahim predict inflation could be 12% Indian. Apelles predicted coal prices until the end of the first half of this year to move in the range of U.S. $ 115-US $ 120 per ton, with a tendency to move the flat while the price trend that continues to weaken.
The movement of coal prices is always awake and not volatile like the crude oil price movements due to avoid the speculation market players. The rate of coal price is more dominated by the demand and supply.
The estimated decline in crude oil prices next week are believed to inhibit the increase in coal prices would be. Crude oil prices plunged again predicted for next week. The main trigger is the increase of oil reserves in the United States.
U.S. Energy Department weekly report as of March 11, 2011 states, crude oil inventories increased by 3.78 million barrels to 370.30 million barrels. This is the highest level of U.S. inventories of crude oil reserves since May 2009.
In addition, gasoline inventories also increased by 1.28 million barrels to 205.8 million in the last seven days. Gasoline demand dropped 1.3% to participate 8.83 million per day, or its lowest level since last February.
While the total fuel consumption in Uncle Sam's country shrank by 0.9% to 18.2 million barrels per day, or its lowest level since June 2009. "The weakening demand and rising inventories of crude oil reserves will continue," said Tim Evans, energy analyst at Citi Futures Perspective in New York as quoted by Bloomberg yesterday.
