Coal futures were trading just below $150 per ton, hovering near a three-year high, as elevated LNG prices—driven by supply disruptions tied to the Middle East conflict—continued to support a shift back toward coal-fired power generation. With coal priced at roughly 80% less than LNG, buyers in Asia and Europe have ramped up imports ahead of the winter season.
In its September outlook, the International Energy Agency projected that global coal demand will reach a record high this year, despite ongoing efforts to accelerate the energy transition and the shutdown of numerous coal-fired power plants across Europe and North America.
At the same time, Indonesia, the world’s largest coal exporter, has tightened export restrictions, helping to push shipments down by 23% in August. The IEA expects Indonesian coal output to fall by more than 12 million tons this year, citing reduced production quotas and heightened policy uncertainty.