Sydney March 2 2022: Coal prices from exporters Indonesia, Australia and South Africa have jumped this week, with benchmark Newcastle coal hitting a record $400.00 a tonne on Thursday, a 27.8 percent rise in a day, in the wake of Russia’s forces gain further ground in Ukraine.
Yancoal chief executive David Moult says his Asian customers are scrambling to find alternative supplies to replace Russian coal, and he expects the military conflict in Ukraine will extend the period of extremely high coal prices.
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The price boom was originally driven by supply disruptions in top exporting jurisdictions such as NSW and Indonesia, but has been turbocharged by the Ukraine conflict and the limits it has placed on the export of Russian energy commodities like oil, gas coal.
Prices for those energy commodities traditionally move in lockstep given they can – to some degree – be substituted for each other and Mr Moult said there was no sign of extra coal supply emerging to douse the price rally.
