Coal news and updates

Coal shortages push up prices, weigh on economies

Coal supply shortages are pushing prices for the fuel to record highs and laying bare the challenges to weaning the global economy off one of its most important—and polluting—energy sources.

The crunch has many causes—from the post-pandemic boom to supply-chain strains and ambitious targets for reducing carbon emissions. And it is expected to last at least through the winter, raising fears in many countries of fuel shortfalls in the months ahead.

Australia’s Newcastle thermal coal, a global benchmark, is trading at $202 a metric ton, three times higher than at the end of 2019. Global production of coal, which generates around 40% of the world’s electricity, is about 5% below pre-pandemic levels.

In Europe, the rising prices for coal and other energy resources have hit factory output and driven household energy bills higher. Major coal importers in Asia, including Japan and South Korea, are jostling to secure supplies.

In China, dwindling supplies and surging costs have resulted in electricity shortfalls on a scale unseen in more than a decade, hitting industry and prompting some cities to turn off traffic lights to conserve power.