02.02.202605:36:53UTC+00Coal Hits 1-Year High

Coal prices have surged past $117 per ton, marking their highest point in a year, driven by robust demand for power generation, especially from China, the world's leading consumer. This year, China plans to commission over 100 new coal-fired power plants, adding to the more than 400 units currently under construction, to meet both domestic electricity needs and export demands. As the largest global consumer, producer, and importer of coal, China remains significantly dependent on this resource to fuel its economy, alongside a rapid expansion of renewable energy sources. This dependence persists even as Beijing has committed to begin reducing coal use before 2030. The global rise in electricity demand, fueled by the proliferation of artificial intelligence data centers and electric vehicle charging stations, has further increased coal consumption. On the supply side, Indonesia's coal production is projected to decline to approximately 600 million tons this year from nearly 800 million tons last year, reflecting diminished import levels from China and India.