Coal Prices Reach 11-Week High Amid Sustained Demand

Global coal prices have reached an eleven-week high, climbing to approximately $145 per ton in early September. This increase is attributed to robust global energy demand and ongoing supply risks, according to a report from Hellenic Shipping News Worldwide.

The fossil fuel's advance occurred despite recent reports from China indicating that solar power has become the country’s largest source of electricity capacity, surpassing coal-fired generation for the first time. This development is part of China's broader push towards renewable energy.

Global Energy Landscape

Despite the growth in renewable capacity in China, coal maintains its position as the world's primary source of power generation. In 2026, it produced nearly 11,000 TWh. Surging global electricity demand is reportedly slowing efforts to replace coal with renewable alternatives.

The International Energy Agency (IEA) projects that coal will remain the single largest source of power generation through 2030. The IEA does not anticipate any individual alternative coming close to replacing coal within this timeframe.

Market Influences

The prolonged conflict in the Middle East has also influenced the market, contributing to tighter global liquefied natural gas (LNG) supplies and driving energy prices upwards. This geopolitical factor has further strengthened the demand outlook for coal, as reported by Hellenic Shipping News Worldwide, citing Trading Economics.