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 8.94 billion tons this year, reversing its previous projection for a slight decline. Although the Middle East is not a major coal producer and virtually no coal shipments pass through the Strait of Hormuz, major economies across Europe and Asia have increasingly turned to coal for power generation amid a sharp drop in LNG shipments. Higher oil prices have also prompted China to increase coal consumption for chemical production. The IEA added that global coal output is expected to decline in 2026 due largely to developments in China, where safety inspections following a major mine accident in May have significantly reduced production.