Global thermal short-term outlook September 2022
This could be the calm before the storm in global thermal coal markets, as northern hemisphere demand remains subdued over the shoulder season but trouble brews on the horizon. Winter demand will test power markets in Europe, northern Asia, and the United States. The La Niña weather pattern projected in the coming months in the southern hemisphere threatens to topple an already precarious supply balance, as major coal exporting regions are expected to have above average rainfall. Australian production, which is already struggling to recover from recent flooding events, may face the largest challenge under these conditions.