Commodities
IEA Predicts 1.2% Rise in Global Coal Demand for 2026
Global coal demand is set to rise by 1.2% in 2026, according to the International Energy Agency (IEA). This reverses an expected decline and brings the total to 8.94 billion tonnes.
The increase is due to disruptions in the Strait of Hormuz, which have driven up liquefied natural gas (LNG) prices to around $150 per tonne. As a result, thermal coal prices have also risen.
Coal-fired generation in Europe, Japan, South Korea, China, and other gas-reliant markets with idle coal capacity is contributing to the increased demand. An unusually strong El Niño event is also cutting hydropower output, stressing grids and tightening supply.