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 winter season. The International Energy Agency also projected in September that global coal demand would reach a record high this year, despite ongoing efforts to transition to cleaner energy sources and the closure of numerous coal-fired power plants across Europe and North America. Meanwhile, Indonesia, the world’s leading coal exporter, tightened export restrictions, contributing to a 23% drop in shipments in August. The IEA expects Indonesian coal production to decline by more than 12 million tons this year, citing lower production quotas and policy uncertainty.