Higher electricity demand due to hot weather has supported higher coal prices.

South African coal prices, hitting multi-year highs, hit $130/ton. Coal quotes from South Africa may continue to rise in the short term, due to additional supply constraints, as rail operator Transnet plans to resume repair works in August, experts say.
The price of domestically produced NAR 5,500 kcal/kg coal at Qinhuangdao port reached $160/ton amid typhoons in China, causing ports in Shanghai, Zhoushan and Ningbo to be temporarily closed. Heavy rains in eastern China caused the average daily temperature to drop, leading to a decrease in electricity demand. According to experts, new heat waves in mid-August.
The closure of some mines due to the worsening epidemic situation in Indonesia and thus reduced supply, supported the Indonesian coal price of 5900 GAR to reach 120 USD/ton.
The lack of supply of Australian coking coal to the Asia-Pacific market, caused by some Australian mines undergoing scheduled maintenance, has supported coking coal prices from Australia to $215/ton. .
According to experts, this year global steel production may reach a new record high due to increased production volume after the COVID-19 pandemic. In the first half of 2021, Chinese steel mills produced 563 million tons (+12% compared to the first half of 2020). According to the forecast of the World Steel Association, by 2021, the total world steel production may exceed 2 billion tons.

Source: thecoalhub.com

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