Insight - Surging coal prices split Asian buyers into rich and poor

Big demand: A man works at a coal mine in Ermelo, South Africa. The total volume of exports of all grades of coal worldwide for September is estimated at 122.8 million tonnes, the strongest month since December 2019. — AFP

AS seaborne coal in Asia trades at, or near, record highs, there are early signs of demand destruction, especially among price-sensitive buyers such as India.

While global seaborne coal volumes have been trending higher in recent months, the market is increasingly becoming split between those importers willing to pay the high prices, and those cutting back on the number of cargoes they are buying.