Coal Hovers at 3-Month High
2026-09-11 09:03
By
Agna Gabriel
1 min. read
Coal prices rose above $145 a tonne, hovering near a three-month high, as the International Energy Agency warned that global consumption is set to reach a record this year.
The IEA expects demand to increase 1.2% to 8.94 billion tons in 2026, reversing its earlier forecast for a decline.
Higher natural gas prices, driven partly by uncertainty over LNG supplies through the Strait of Hormuz, are encouraging power generators to switch from gas to coal.
This trend has been evident across major markets including China, South Korea, Japan and Europe.
Strong El Niño conditions are also boosting electricity demand for cooling while reducing hydropower generation in countries such as India and Vietnam.
Although expanding wind and solar capacity is limiting the growth of fossil fuels, rising global electricity demand continues to support coal consumption.
The IEA warned that if LNG flows through Hormuz remain disrupted, global coal demand could reach another record in 2027.