It’s Not Over Yet for Coal as Global Prices Surge on Hot Demand
- Rising seasonal demand coinciding with supply problems
- Correction likely in northern hemisphere fall: Morgan Stanley
Stockpiles of coal at the Newcastle Coal Terminal in Newcastle, New South Wales, Australia, March 26.
Photographer: Brendon Thorne/BloombergThis article is for subscribers only.
Coal is seeing a dramatic spike in demand just as several major miners are hit with production problems, sparking a surge in prices from China to Europe.
Prices for the dirtiest fossil fuel are soaring as hot weather in North Asia raises air conditioning needs, adding to already strong demand due to the industrial recovery from the pandemic. Mine safety issues in China, heavy rainfall in Indonesia and disruptions in Colombia are constraining output.