The coal market is always a fear of businesses because of the strong volatility. This also means that the coal industry is facing significant challenges in the sustainable development strategy of enterprises.
DIFFICULTY IN PRICE AND QUANTITY OF IMPORTING COAL
In the first 5 months of 2021, coal imports reached 16.43 million tons, equivalent to 1.46 billion USD, a sharp decrease of 33% in volume and 19% decrease in turnover compared to the first 5 months of 2020. Average price The average in the whole 5 months reached 88.9 USD/ton, up 21%.
Coal imported to Vietnam mainly comes from 3 markets: Australia, Indonesia and Russia.
The second largest market supplying this group of goods to Vietnam is Indonesia, reaching 6.39 million tons, equivalent to nearly US$441.17 million, priced at US$69.1 per ton, accounting for 38.87% of the total volume and accounting for 30.21% of total turnover.
Coal imports from the Russian market accounted for 11.3% of the total volume and accounted for 13.9% of the total turnover, reaching 1.86 million tons, worth 202.6 million USD.
Currently, there are about 34 Indonesian coal mining and trading enterprises banned from exporting.
An increase in supply but a decrease in demand is one of the main reasons causing the increase in coal prices to a relatively high level, which also means that many businesses using coal have to bear high costs for buying imported coal imports, which has a great influence on production costs and revenue of enterprises.
Vietnam’s coal imports fell for the third consecutive month in February 2021 from a year earlier as production was halted amid the Covid-19 pandemic.
DISADVANTAGES OF ENVIRONMENTAL STANDARDS
Currently, most industries have a need to use large and sustainable energy sources, however, quite a few value chains of businesses are being interrupted when constantly facing customer problems as important as the Covid-19 pandemic, but most of it is related to environmental standards.
The IEA is raising the alarm, the amount of CO2 is increasing sharply again in 2021 – this is what businesses will be very worried about if the Government makes a regulation to reduce CO2 to a level lower than the prescribed level. This will be a difficult problem for businesses because the CO2 emission of coal is quite high and it is difficult to deal with.
