Newcastle coal futures, the benchmark for top consuming region Asia, consolidated below the $400-per-tonne mark as surging inventories and prospects for weaker demand amid signs of slowing global growth continued to pressure the market. Global coal supply investment is forecasted to grow by 10% in 2022 as tight supply continues to attract investment in new projects, particularly in Europe, with top consumers stepping up efforts to diversify their energy sources. The war in Eastern Europe has created a global energy crunch and exacerbated concerns over coal supplies in a market already in a tight balance. Coal prices have rallied as high as $430 in late May, and further upside pressure could be expected in the near term and is intrinsically related to the duration of the conflict and the severity of disruptions to commodity flows.
