Coal prices corrected to below $400 per tonne, moving away from a record high of $425 hit in the previous session amid some technically-driven selling. Fundamentals in the coal complex continue to be supported by fears of further supply-chain disruptions and low inventories. Mounting sanctions on Russia for invading Ukraine led to an international energy crunch and exacerbated concerns about an already tight market.
On top of that, limited access to European ports led to a rush by utilities in Asia and Europe to find alternative suppliers, such as Australia. On the demand side, Europe’s thermal coal imports reached their post-pandemic peak last October, at 7.5 million tons, bringing total coal inventories to the region’s lowest point in many years. Coal prices have more than doubled in value since the beginning of 2022, with earlier bullish sentiment already fueled by supply disruptions in top exporting countries such as Indonesia and Australia.
