Coal market faces standoff as buyers resist high prices
Summary
The coal market is currently experiencing a standoff as buyers resist high prices, even with expensive alternatives like liquefied natural gas (LNG) being available. This resistance occurs despite the context of rising LNG prices influenced by conflicts in the Middle East, which have reinforced coal's role as an alternative in power generation for certain regions. Additionally, top coal exporters are facing production limits and logistical issues that have contributed to tight supply in the market, further complicating the situation.
Analysis
Ed Spencer: Ed Spencer is a Bloomberg journalist covering energy markets and commodities. He authored a recent report on the ongoing coal market dynamics amid tight global supplies and elevated prices for competing fuels like LNG. His reporting highlights buyer resistance in the face of these conditions. Supply Chain: Top coal exporters are encountering challenges from production limits and logistical issues that are keeping supplies constrained. Buyer Behavior: Coal purchasers continue to push back against elevated prices despite the high cost of LNG and other substitutes. Energy Markets: Conflicts in the Middle East are contributing to higher LNG prices, supporting coal's position as an alternative in power generation for some regions.
Categories
macro
Related sources
- https://www.bloomberg.com/opinion/articles/2026-09-29/black-lung-disease-is-the-only-true-comeback-for-coal
- https://bloomberg.com/opinion/articles/2025-11-11/coal-and-carbon-emissions-america-s-dirty-fuel-secret-spreads-around-the-world?utm_source=website&utm_medium=share&utm_campaign=twitter
- https://www.reuters.com/commentary/reuters-open-interest/asias-seaborne-thermal-coal-market-is-shrinking-very-slowly-2026-09-30/
- https://www.bloomberg.com/opinion/articles/2024-12-18/we-re-burning-more-coal-than-ever-thanks-to-china
- https://www.argusmedia.com/en/events/webinars/coking-coal-outlook-china-webinar
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- https://x.com/i/user/1182464685293166592
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- https://www.iea.org/news/global-coal-demand-set-to-increase-this-year-amid-middle-east-conflict
- https://x.com/i/user/1461846592793690112
- https://www.theedgesingapore.com/news/commodities/worlds-top-coal-exporter-strains-lift-output-prices-soar
- https://mercury.bloomberg.com/news/SLOTSTT1UM0W
- https://www.nytimes.com/2020/02/28/climate/bloomberg-climate-change-coal.html