Coal futures traded above $117 per ton, near the highest level since October of 2011, amid higher demand and supply constraints. The demand from Japan and South Korea surged recently amid expectations for a warm northern hemisphere summer. Meanwhile, mining accidents in China, heavy rainfall in Indonesia, and disruptions in Colombia have been impacting supply. In China, the biggest consumer of coal, prices are up 34% since the end of February, due to a ban on imports from Australia and rising electricity demand, leading Chinese authorities to consider imposing a cap on the price of thermal coal. Meantime, the leaders of the G7 member nations failed to agree on specific dates for a phase-out of coal from power generation at their annual summit but did agree to a largely decarbonized power system in the 2030s and to end public financing for overseas coal-fired plants by the end of this year.
