Newcastle coal futures, the benchmark for the top consuming region of Asia, consolidated around the $400 per tonne mark on prospects of continued robust demand and tight supplies. Above-average demand from Europe on persistent fears of an energy crisis coupled with skyrocketing thermal coal imports from India, as electricity demand increased because of a pickup in economic activity, has been key drivers to keep prices elevated. According to the IEA’s annual report, global coal consumption is likely to grow by 1.2% in 2022, exceeding 8 billion tonnes in a single year for the first time and a previous record set in 2013. On top of that, a seasonal upturn in coal-fired generation during the winter reinforced this view of solid global demand. On the supply side, wet weather and flooding brought to Australia and Indonesia by the La Niña phenomenon have hit coal production.
