Thermal coal markets short-term outlook August 2021
It’s been another record-breaking month for coal prices supported by hot summer demand in the northern hemisphere. The resurgence in coronavirus cases seems to have only added supply concerns without much demand disruption. China’s benchmark coal prices hovered at above RMB1,000/t with the domestic production ramp-up delayed since July. Seaborne coal supply responses have improved marginally. How long will current prices stay? European coal-to-gas switching economics and low inventory have justified the high gas prices, but the commissioning of Russia's new gas pipeline later this year may change the picture. Will we see a knock-on impact on coal prices like 3 years ago?