Coal prices in the United States hit record highs last year, driven by increased demand for the dirty fuel rise during winters. The price of coal mined from Central Appalachia, which is a benchmark for the eastern U.S. thermal coal market, hit 12-year highs in November last year. Coal prices, on average, have doubled in 2021. Moreover, the temporary export ban announced by Indonesia, the biggest coal exporter in the world, earlier this month has caused coal prices to rally. The upward pressure on coal prices will likely continue until such a ban is removed.
The International Energy Administration (IEA) expects coal demand to hit all-time highs in 2022 as the global economy recovers from the pandemic-fuelled disruptions. Moreover, IEA is predicting that the coal demand will likely remain at the all-time high level until at least 2024.
