• Oil & Gas - Energy
  • Updated: December 01, 2021

Coal Slumps To 2-Week Low Amid Investors’ Omicron Fears

Demand for coal as one of the core ingredients used in power generation slumped to a record low today. Coal prices within the past 24 hours oscillated between $158 and $152 amid reactions from big investors.

According to reports from Trading Economics, GC Newcastle coal futures fell towards $150 per metric ton, hovering around the lowest level since mid-November amid concerns over the impact of the omicron variant on the global economic recovery and as Beijing signaled further regulations for prices of the power-generation fuel.

Still, prospects of increasing demand as the winter heating season kick in northern China and Europe provide some support.

Coal prices are still more than 40% lower than their all-time high of $269.5 set on October 5 when output in China reached multi-year highs.

Since July, China has approved expansions at more than 153 coal mines, aiming to end a power shortage and lower record prices.

Coal is expected to trade at 167.26 USD/MT by the end of this quarter, according to Trading Economics global macro models and analysts' expectations.

Looking forward, analysts at trading economics estimate it to trade at 144.19 USD/MT in 12 months’ time.

Historically, coal reached an all-time high of 269.50 USD/MT in October of 2021.

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Okojie Kelvin Echiejile
Okojie Kelvin Echiejile

I am an astute, dedicated, devoted, and intelligent investigator of economic, and financial news and...

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