The coal price has skyrocketed in 2021 what does it mean for… – MENAFN.COM

The coal price has skyrocketed in 2021 what does it mean for… – MENAFN.COM

It is only a few days since the latest report from the Intergovernmental Panel on Climate Change (IPCC) signalled the dire consequences of human-induced climate change. At the heart of this stark warning by UN Secretary General António Guterres and the scientists behind the report was the urgent need to heavily reduce coal in the energy mix. Yet in the run-up to publication, and absent from mainstream news headlines, was the steady ascent of coal prices, past US$100 (£72) per metric tonne in June and then past US$130 in mid-July to over US$170 today. This is almost four times the price last September. The rise in prices can be attributed squarely to a resurgence of demand after the depths of the pandemic – especially in emerging Asian markets such as China and India, but also in Japan, South Korea, Europe and the US. Electricity demand, which remains closely linked to coal, is expected to have increased by 5% across 2021 and a further 4% in 2022. On the supply side, there are also some issues such as China being unable to acquire coal from Australia due to an import ban, and smaller disruptions in the export output of major producers