Coal Prices Remain Elevated on Strong Demand
Coal futures traded just below $150 per ton, hovering near a three-year high as elevated LNG prices, driven by supply disruptions linked to the Middle East conflict, continued to encourage a shift toward coal-fired power generation. With coal costing roughly 80% less than LNG, buyers in Asia and Europe have increased imports ahead of the ...
Coal prices remained high due to robust demand, trading close to a three-year peak at just below $150 per ton, according to recent data. This surge in prices can be attributed to the surge in liquefied natural gas (LNG) costs, which escalated as a result of disruptions in the Middle East conflict. The shift towards coal-fired power generation is driven by the fact that coal is approximately 80% cheaper than LNG, making it a more economical choice for buyers in Asia and Europe who are preparing for the winter season.
The International Energy Agency (IEA) forecasted in September that global coal demand would hit a record high this year, despite ongoing initiatives to transition towards cleaner energy sources and the decommissioning of numerous coal-fired power plants in Europe and North America. On the other hand, Indonesia, the world's primary coal exporter, implemented stricter export limitations, leading to a 23% decline in shipments during August.
The IEA anticipates that Indonesian coal production will fall by over 12 million tons in the current year, mainly due to lower production quotas and policy uncertainties.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
