Coal prices hit record highs in Asia

Coal prices hit record highs in Asia as the threat of supply cuts adds new risks to the global energy sector. The price of coal loaded at the port of Newcastle, Australia, reached 436.71 USD per ton last Friday. This is almost three times the price of this time last year. October futures in Newcastle rose 5 percent to $463.75 a tonne on Monday, according to ICE Futures Europe. Benchmark coal prices in Europe are also hitting record highs. Due to uncertainty about the flow of natural gas to Europe, the demand for coal in the continent is likely to increase, which continues to raise fuel prices. In addition, the mines of Australia, the world’s main supplier, may face problems caused by bad weather. Because, the country is expected to receive more rainfall in late 2022. “Severe disruptions to Australian coal shipments could push high-calorific coal prices to new highs,” Morgan Stanley analysts led by Marius van Straaten said in a note. During the rainy season, coal mines and railways were cut in New South Wales and Queensland, Australia, and production in 2010 and 2011 was reduced by 20-30 percent. Demand for coal is recovering as global gas supplies are squeezed as some buyers refuse to import gas from Russia and many countries are slow to invest in other sources, such as renewable energy. Several European countries have restarted coal production, while other major consumers, including India, have increased imports.

Asia coal price hits record as global hunt for fuel escalates

Latest articles

Related articles

Leave a reply

Please enter your comment!
Please enter your name here