Coal Stock Conundrum in 2023

[ad_1] – During 2022, coal stocks are the prima donna in Indonesia. Soaring coal prices at the global level, made coal stocks also increase. However, prospects for 2023 remain unclear amidst a resurgence in coal production in India and the threat of a 2023 Economic Recession.

Coal is a rising energy in 2022. The reason, the Ukrainian war occurred. This war hampered energy supplies from Ukraine and Russia to various countries in Europe.

In order to punish Russia, many Western countries stopped buying energy from Russia. In fact, much of Europe is highly dependent on gas supplies from Russia.

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In addition to the Russian war, production of goods is also rising again around the world. After the Covid-19 pandemic subsided, economic activity ran smoothly.

However, in the midst of a stretched economy, energy supplies were also reduced due to the Ukrainian war. Suddenly, energy and electricity prices in Europe went up suddenly.

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In the midst of the European energy crisis, coal is the choice in many countries. Indonesia, as one of the largest coal producers in the world, has also received sustenance.

Coal stocks were also carried up along with rising coal prices in various countries. In a way, coal stocks are the prima donna throughout 2022.

In the first half of 2022, coal stocks are up thousands of percent. For example, BUMI shares have increased year on year (Yoy) by 2,286%. Likewise Adaro Energy’s shares which reached 613% on a Yoy basis.

Another impact, the two companies earlier, received an increase in capital value in the first half of 2022 with a large value. Bumi received an additional capital value of 2.56 trillion, while Adaro received 8.32 trillion.

However, towards the end of 2022, the Indonesian coal industry should be vigilant. India is said to be boosting their coal production.

India is said to be increasing coal production by 1.34 billion tons in 2026 to 2027. This news had made coal stocks fall at the end of December 2022.

Although many analysts say that the decline in coal stocks is only temporary, global factors in 2023 should be watched out for. After an energy crisis, it is said that supply will return to normal in 2023.

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