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. Coal prices have also been aided by problems at least partially of Beijing’s own making. China’s benchmark thermal coal futures hit a record last month and are 60% higher than they were a year ago. Spot prices for high-quality thermal coal in the port of Newcastle rose to the highest level since 2011 on Monday. Even with rising Chinese demand, IHS sees global consumption of seaborne thermal coal at least 55 million tons lower this year than in 2019 as major users like India battle the virus.

Source: Mint June 04, 2021 00:48 UTC