Thermal coal markets short-term outlook November 2021
Thermal coal markets took the first half of November to find their feet from rapidly falling coal prices induced by China's price controls. The modest bounce in coal prices from mid-month seemed to cast one eye to the surge in Delta cases and restrictions in Europe, while Omicron's arrival and possible further intervention by the NDRC were enough to spoil the recovery. Newcastle thermal coal prices are likely to trade lower through December, but with ongoing volatility. Prices will remain elevated owing to seasonal demand strength and various supply concerns.