Jakarta, CNBC Indonesia - Coal prices strengthened again on Tuesday,\nclosing at US$129.45 per ton, a gain of 1.57%, extending a two-day rally\nto 2.7%.<\/p>\n
The increase was underpinned by rising electricity demand due to\nheatwaves sweeping the United States and Europe. In Europe, hot weather\nboosted power consumption, while low water levels on the Rhine River\nhampered coal distribution, raising supply concerns.<\/p>\n
In the United States, the government extended the operation of the\nCraig Station Unit 1 coal-fired power plant in Colorado until 26\nSeptember 2026 to maintain reliable electricity supply during the peak\nsummer season. This move reinforces the Trump administration\u2019s policy of\ndelaying the retirement of coal-fired power plants to anticipate surges\nin electricity demand.<\/p>\n
Positive sentiment also came from China, where the metallurgical coke\nmarket remains in an upward trend. The price increase was triggered by\ntight coking coal supply. Production disruptions following safety\ninspections after a mining accident in Shanxi have prevented supply from\nfully recovering, keeping production costs high.<\/p>\n
On the other hand, steel mill profit margins are under pressure.\nSteel prices have not risen as quickly as raw material costs, causing\nsteel producers\u2019 profits to continue shrinking. This situation is\nleading steel mills to consider whether they can absorb further\nincreases in coke prices. Although hot metal production in China remains\nat high levels, keeping coke demand strong, the approaching low season\nin July and August is expected to weaken steel demand from the\nconstruction sector, with some steel mills beginning to schedule\nmaintenance, potentially reducing coke consumption.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/coal-prices-surge-again-amid-global-heatwave-and-chinese-steel-demand-1782867069", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }