11 days ago • Posted by William Ramstein
Coal prices could keep rising for a long time
Coal prices are rising to prices not seen in years-- but the spur might not be enough to further investment in new mines as investors and regulators start walking away from the world's dirtiest fossil fuel. Strong industrial activity in major economies is aiding coal consumption while supply is constrained by problems of weather in Indonesia and China's mine safety push, and Colombia's strikes. Demand in Europe has increased 10%-15% but despite this, even China are seeing shrinking capital spending budgets. ''Even as the world moves away from coal, demand will remain strong through the 2030s and, without new supply, prices are likely to stay high, he said. When the market is squeezed, like now, price spikes won’t incentivize new supply, but will set off mini-waves of coal power plant closures that will kill off consumption until the market rebalances''