Coal prices have climbed to their highest level in a decade. Rebounding electricity usage in China have lifted demand for coal while supplies have been crimped by a closed mine in Colombia and flooding in Indonesia and Australia. Distorted trade flows caused by a Chinese ban on Australian coal also contributed to the short supply of coal.

The demand and supply imbalance of coal is likely to stay for several months. Thus, coal prices are expected to remain high in the coming periods. Elevated coal prices are likely to deliver windfall to companies that held on to coal mines despite pressure from investors to abandon them.
Even though coal has provided DMC with a good result, in the first quarter of 2021 DMCI Homes’ net income surpassed that from coal. DMCI Homes becomes the leading net income contributor of DMC despite the coal unit’s improved results.
DMC is likely to outperform its pre-pandemic results this year.
With the windfall from its coal and home units, it will just be a matter of time that DMC will invests in the energy transition. In making investment decisions, DMC considers investments in industries that will leverage the Company’s engineering and management expertise and construction resources. Surely DMC’s expertise in engineering and management can be of great leverage in renewable energy projects like wind, solar, geothermal, and hydro.
You may follow our views and commentaries in Google News in the web or in the Google News app. Just search accuretti.com in Google News (or click this link). Then click the star to follow.