Coal Hovers Near 3-Month High
Coal prices held above $145 per ton in mid-September, remaining near their highest levels in three months as the IEA said disruptions from the Middle East conflict had pushed oil and natural gas prices higher, encouraging a shift toward coal-fired power generation. The IEA now forecasts global coal demand to increase 1.2% to a record ...
Coal prices reached a three-month high of $145 per ton in mid-September, according to recent data. This surge comes as the International Energy Agency (IEA) reported disruptions from the Middle East conflict, leading to increased prices for oil and natural gas. The agency now predicts global coal demand to rise by 1.2% to an all-time high of 8.94 billion tons this year, marking a shift away from its earlier forecast of a modest decrease.
While the Middle East is not a significant coal producer and does not export coal through the Strait of Hormuz, major economies in Europe and Asia have increasingly relied on coal for power generation due to a sharp decline in liquefied natural gas (LNG) shipments. Higher oil prices have also encouraged China to boost coal consumption for chemical production.
The IEA further stated that global coal output is expected to decline in 2026, largely attributable to safety inspections following a major mine accident in China in May, which have significantly reduced production.
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