Newcastle coal futures, the benchmark for top consuming region Asia, bottomed around $400 per tonne, moving away from an almost record high of $430 as investors unwound some long positions on the back of prospects of increased supplies. China, the world’s largest coal consumer, announced that it could lift a nearly two-year ban on Australian coal as tensions ease while it seeks to replace shipments from Russia.
Still, coal prices are poised to remain elevated amid robust demand and persistent global supply disruptions exacerbated by the war in Eastern Europe. Europe is now turning to seaborne coal from South Africa and even as far away as Australia as it halts imports from Russia. India, the world’s second-biggest coal importer behind China, saw record thermal coal arrivals in June following recent power shortages.