FX.co ★ Coal Hits One-Year High

Coal prices approached $120 per ton in mid-February, their highest level in a year, as China—the world’s largest coal producer and consumer—moved to reshape its coal industry amid signs that demand is nearing its peak. Regulators approved a plan for China Shenhua Energy Co. to acquire about $19 billion in assets from its parent, China Energy Investment Corp., including coal-to-chemicals, mining, power generation, and logistics businesses. The deal will strengthen Shenhua’s vertical integration and enhance supply-chain efficiency, lifting its annual coal production capacity to 512 million tons. In the United States, President Donald Trump sought to bolster the struggling coal-fired power sector by allocating $175 million in federal funds to upgrade six plants and directing the Defense Department to purchase power from additional facilities.