Asian Coal Prices rallied to a record high as India secured shipment 30/05/22

Asian Coal Prices Extend Record-Breaking Rally on Indian Demand

 

Asia’s coal benchmark rallied to the highest on record as India — a top consumer of the power plant fuel -moved to secure shipments, tightening supplies in the region. Spot physical coal at Australia’s Newcastle port jumped 1.6% to a record $398.75 a ton on Friday, according to a biweekly index compiled by IHS Markit seen by Bloomberg. Several shipments were sold at rates above $400 this month, according to traders.  Importers across Asia and Europe are rushing to secure replacements as they shun Russian fuel following the invasion of Ukraine, while heat waves in India and Pakistan spur demand. The global energy crunch is lifting consumption for the dirtiest of fossil fuels to power homes and factories, a remarkable comeback for a commodity that many thought was on its way to being phased out.

 

India’s power ministry has been calling on coal importers to ensure supplies as the country increasingly relies on the fuel to stem blackouts. The government asked Coal India Ltd. to import on behalf of power plants for blending purposes, the first time in many years the state-run company would be buying fuel from abroad, the Economic Times newspaper reported over the weekend.

 

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