After a surge, coal prices have now fallen to US$231.5 per ton.

Coal prices have been declining for the past few days. According to Investing.com, the price of coal on the ICE Newcastle market reached US$231.5/ton on Thursday, October 21, 2021, at 12:56 WIB (Western Indonesian Time).

The price of this fossil fuel has been correcting since October 14, when it was US$245/ton. It then fell to US$229.9/ton on October 19.

Previously, coal prices surged in early October, reaching US$269.5/ton. This represents a 234.8% increase compared to the end-of-year price of US$80.5/ton in the previous year.

The global increase in coal prices was driven by electricity demand and industrial growth. This resulted in a tightening of coal and liquefied natural gas supplies.

Furthermore, India is competing with China, the world's largest coal consumer, for coal supplies. China is under pressure to increase imports amid a severe electricity crisis. This has become a negative sentiment for global coal prices.

However, the Chinese government is now considering intervening in the prices of various commodities that have seen increases, including coal. President Xi Jinping's administration will make every effort to bring prices back to a reasonable range.