Coal supply is struggling to keep pace with demand

Global coal supply is struggling to keep pace with rising Asian demand as production constraints and higher prices tighten the market, potentially pushing thermal coal prices higher this winter, according to Bank of America (BofA) analysts.

Benchmark Australian prices have surged 40% this year to around $150 per metric ton, their highest level in two years, supported by stronger consumption and limited seaborne supplies.

BofA expects prices to remain supported through winter as elevated natural gas costs encourage power producers to switch to coal, particularly across Asia.

The Middle East conflict has tightened liquefied natural gas supplies, pushing Asian above $30 per million British thermal units and European beyond €90 per megawatt-hour this month.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →