Coal prices remained elevated because of the global energy shortage and rising natural gas prices. Moreover, as Western countries abandoned Russian coal shipments, the supply disruptions have caused the coal prices to surge. Newcastle coal futures, the primary traded benchmark for coal in Asia, is currently trading around $400 per tonne, just $30 away from the record high.
Furthermore, surging natural gas prices relative to coal increased demand for coal-fired power generation. The energy-dependent European countries, including Germany, Austria, and the Netherlands, are considering switching back to coal to fill the gaps in the supply chain.
