Coal prices are holding near $130 per ton, below the 17‑month peak of $146.5 reached on March 20, yet still almost 9% higher since the war broke out in early March. The increase largely reflects spillover from elevated risk premiums in oil and LNG markets, as stalled US‑Iran peace talks keep key shipping routes shrouded in uncertainty.
Across Asia, coal remains crucial for baseload power. Japan is extending the operating life of its coal-fired plants, and South Korea is loosening restrictions on coal use. At the same time, China is ramping up domestic coal production and accelerating coal-to-gas projects to reduce reliance on imports. Together, these moves highlight a wider shift toward energy security, with governments seeking to shield themselves from persistent concerns over gas and oil supply.
Nonetheless, any normalization in energy flows from the Middle East could quickly reverse recent coal price gains. Over the longer term, demand for coal is expected to face mounting headwinds from the rapid expansion of renewable energy and ongoing policy-driven energy transitions around the world.
In corporate developments, Anglo American has drawn interest from at least three potential buyers for its Australian steelmaking coal assets. Stanmore Resources, Mitsubishi Corporation, and PT Buma Internasional Grup are among the suitors reportedly evaluating bids.
