11.09.202609:03:03UTC+00Coal Hovers at 3-Month High

Coal prices have climbed above $145 a tonne, hovering near a three‑month high, after the International Energy Agency (IEA) warned that global coal consumption is on track to hit a record this year. The IEA now expects demand to rise 1.2% to 8.94 billion tons by 2026, reversing its earlier forecast of a decline.

Elevated natural gas prices—driven in part by uncertainty over LNG shipments through the Strait of Hormuz—are prompting power producers to shift from gas to coal. This fuel‑switching has been evident in major markets including China, South Korea, Japan, and Europe.

Strong El Niño conditions are further underpinning demand, increasing electricity use for cooling while curbing hydropower output in countries such as India and Vietnam. Although the rapid expansion of wind and solar capacity is constraining the growth of fossil fuel use, robust global electricity demand continues to support coal consumption.

The IEA also cautioned that if LNG flows through the Strait of Hormuz remain disrupted, global coal demand could set another record in 2027.