14.09.202604:20:50UTC+00Coal Hovers Near 3-Month High

Coal prices remained above $145 per ton in mid-September, hovering near their highest level in three months, after the IEA reported that disruptions linked to the Middle East conflict had driven up oil and natural gas prices, prompting greater use of coal-fired power generation. The agency now expects global coal demand to rise by 1.2% to a record 8.94 billion tons this year, reversing its earlier forecast of a modest decline.

While the Middle East is neither a major coal producer nor a significant transit route for coal — with virtually no shipments passing through the Strait of Hormuz — major economies in Europe and Asia have increasingly relied on coal for power amid a steep reduction in LNG supplies. Higher oil prices have also led China to boost coal consumption for chemical production.

The IEA further noted that global coal output is projected to fall in 2026, driven largely by developments in China, where extensive safety inspections following a major mine accident in May have sharply curbed production.