Middle East Conflict Boosts Global Coal Trade to Record Levels
The International Energy Agency (IEA) has revised its forecast for global coal trade, citing the ongoing conflict in the Middle East as a key driver behind the shift. According to the IEA, restricted liquefied natural gas supplies have pushed some power producers back towards coal, leading to an increase in demand and prices.
South Korea's coal imports are expected to rise by over 10%, while Japan's thermal coal purchases will hold around 124 million tonnes this year. The global coal consumption is forecast to reach a record 8.94 billion tonnes, up 1.2% from last year.
The IEA notes that the link to Hormuz is indirect, as the Middle East is not a major coal-producing or consuming region. Instead, the restrictions on LNG flows have raised gas prices and made coal-fired generation more competitive in countries with both gas plants and unused coal capacity.