I last wrote about the coal market on Barchart in mid-October 2022, highlighting that coal prices were heading into a “winter of discontent.” My Shakespeare analogy that warned a cold European winter could cause a Shakespearean tragedy for consumers did not pan out as temperate weather conditions caused coal demand and prices to decline.
Nearby ICE Rotterdam coal futures were at the $258 per ton level on October 17, 2022, with nearby Newcastle coal prices at $387.50 per ton. In August 2023, prices are half those levels, but another winter of discontent could be on the horizon. While the coal market panicked leading into the 2022/2023 winter, it could be too calm heading into the 2023/2024 cold season.
