FX.co ★ Coal Prices Climb on Firm Demand Outlook

Newcastle coal futures have surged towards $106 per ton, marking a two-week peak as coal continues to hold a significant role in the global energy landscape, despite initiatives aimed at reducing reliance on fossil fuels. Worldwide, governments persist in endorsing new coal-fired power developments to address rising electricity needs, with approximately 2,500 plants remaining active around the globe. The International Energy Agency reports that by 2025, coal is anticipated to account for about 35% of global electricity production. This new capacity is predominantly concentrated in 15 nations, with China at the forefront, followed closely by India and the United States within the top five contributors. Nonetheless, recent evidence suggests a pivotal shift, as renewable energy has, for the first time, outstripped coal in global power generation. This shift is attributed to solar and wind energy's production during the first half of 2025, which has exceeded the pace of overall electricity demand growth, resulting in a slight reduction in fossil fuel usage compared to the previous year.