Historical levels in coal prices

Coal prices reached record highs amid global supply concerns after Chinese consulting firms warned that non-Russian near-term deliveries were being sold.

Newcastle coal in Asia rose 35 percent on Friday to a new record high of $353.75 per tonne. Shipping for June delivery was traded at $415 per tonne.

In the market where Russia is the world's third largest coal exporter, Chinese consultancy firm Fengkuang Coal Logistics stated that alternative countries, such as Indonesia, the number one exporter, sold all their capacities during the second quarter.

The firm added on Sunday that some power plants in Southern China have increased their purchases from the domestic market to close the import gap.

Users in Europe, together with consumers in Japan and South Korea, are seeking alternative coal sources, causing price pressures to increase in the already tight market.

The Russian oil embargo plan hit the energy markets

Concerns about the tightening of energy markets continue to rise after US Secretary of State Blinken announced that the Biden administration and its allies are discussing a ban on Russian oil.

Pressures have also begun to grow to reduce imports from the Russian energy industry, which has not been subject to sanctions by the US and Europe until now. Still, investors, carriers, insurers, and banks are very cautious about accepting Russian cargo.

However, thermal coal futures on the Zhengzhou Commodity Exchange rose 8 percent on Monday, hitting the highest level since November, while Chairman Xi Jinping announced that they will announce support for coal over the weekend.

In a meeting with Inner Mongolia officials, which has an important place in terms of coal mines, President Jinping said that China's green transformation will not happen overnight and that its coal-based energy structure will not change in the short term.

On the subject, Xi commented, "We cannot end those who feed us now until we reach the opportunities that we expect to feed us later."