Demand for thermal coal is growing once more, with shipping standing to benefit. In its latest weekly report, shipbroker Intermodal said that “with the winter heating season underway, the thermal coal market is benefiting from strengthening demand, as elevated natural gas prices reinforce coal’s cost competitiveness in power generation. Qatari LNG volumes remain sharply reduced, while European natural gas prices have returned to levels last seen during the 2022 energy crisis, with Dutch TTF prices recently exceeding €100/MWh and EU gas inventories below their 5-year average. These conditions have improved coal-fired generation economics, encouraging gas-to-coal switching across parts of Europe and Asia. Nevertheless, seaborne thermal coal trade is expected to remain broadly stable in 2026, as additional demand from fuel switching is largely offset by supply constraints”.

Source: Intermodal…