Met coal’s 2021 price rise – why this spike is different

If you think the current record-breaking price spike feels different, you would be correct. This year’s rapid rise has left the iconic shocks of 2008, 2011 and 2016-17 in its wake. What sets 2021 apart are the unique trigger events, but there are plenty of similarities too. We explore this year's spike in the context of previous shocks to understand common triggers and how markets corrected and evolved. We learn that spikes are not just random events occurring in isolation, but rather symptoms of changing market dynamics that come to light usually due to a shock supply disruption. Changing behaviour of market participants - as a result of the volatility - has added to the impact from historical price surges. Life after a spike is rarely the same. So what profound changes might we expect this time, once prices subside?