Soaring demand for the world’s least-liked commodity sees thermal coal prices jump 106% this year

Published

4 years ago

August 19, 2021

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A freight train transports coal from the Gunnedah Coal Handling and Prepararation Plant, operated by Whitehaven Coal Ltd., in Gunnedah, New South Wales, Australia, on Tuesday, Oct. 13, 2020.

David Gray | Bloomberg | Getty Images

LONDON — Soaring electricity demand, infrastructure woes and a surge in global gas prices have triggered an extraordinary rally for the world’s least liked commodity.

Australian thermal coal at Newcastle Port, the benchmark for the vast Asian market, has climbed 106% this year to more than $166 per metric ton, according to the latest weekly assessment by commodity price provider Argus.

The Newcastle weekly index, which stood at a 2020 low of $46.18 in early September, now appears to be closing in on an all-time high of $195.20 from July 2008. Its South African equivalent, the Richards Bay index, ended the week through to Aug. 13 at $137.06 per metric ton, up more than 55% this year.

To put thermal coal’s remarkable rally into some context, international benchmark Brent crude is one of few assets to have recorded comparable gains this year. The oil contract is up 33% year-to-date.

The resurgence of thermal coal, which is burned to generate electricity, raises serious questions about the so-called “energy transition.” To be sure, coal is the most carbon-intensive fossil fuel in terms of emissions and therefore the most important target for replacement in the pivot to renewable alternatives.

Yet, as policymakers and business leaders repeatedly tout their commitment to the demands of the deepening climate emergency, many still rely on fossil fuels to keep pace with rising power demand.

It comes shortly after the world’s leading climate scientists delivered their starkest warning yet about the speed and scale of the climate crisis. The Intergovernmental Panel on Climate Change’s landmark report, published Aug. 9, warned a key temperature limit of 1.5 degrees Celsius could be broken in just over a decade without immediate, rapid and large-scale reductions in greenhouse gas emissions.

U.N. Secretary-General, António Guterres, described the report’s findings as a “code red for humanity,” adding that it “must sound a death knell for coal and fossil fuels before they destroy our planet.”

Earlier this year, Guterres pushed for all governments, private companies and local authorities to “end the deadly addiction to coal” by scrapping all future global projects. The move to phase out coal from the electricity sector was “the single most important step” to align with the 1.5-degree goal of the Paris Agreement, he said.

Outlook for thermal coal prices

Yulia Buchneva, director in natural resources at Fitch Ratings, told CNBC that thermal coal remains a key global energy source, noting the commodity still has a more than 35% share in global power generation.

“We expect that the share of coal in energy generation will decline driven by the energy transition agenda, however this will have a rather longer-term impact on the market. In the medium-term demand for coal in emerging markets with less strict environmental agenda, in particular in India, Pakistan, and Vietnam, where coal-fired power dominates generation, is expected to rise,” Buchneva said.

By comparison, Buchneva said that since the U.S. and EU account for only 10% of worldwide demand for coal, an expected contraction in these regions would have a limited impact on the global market.

When asked whether thermal coal prices could push even higher in the coming months, Buchneva replied: “The current high thermal coal prices have decoupled from costs and are therefore not sustainable. We expect that prices will normalize during the remainder of the year.”

Fitch Ratings assumes the price of high energy Australia coal will decline toward $81.

A bucket-wheel reclaimer stands next to a pile of coal at the Port of Newcastle in Newcastle, New South Wales, Australia, on Monday, Oct. 12, 2020.

David Gray | Bloomberg | Getty Images

Energy analysts cited a variety of reasons for thermal coal’s breakneck rally. These included rebounding power demand in China, Beijing’s informal ban on coal imports from Australia, supply disruptions in Australia, South Africa and Colombia, and rising global gas prices.

For the latter, analysts at Argus said Europe had incurred unseasonably low gas storages, weak liquified natural gas imports and modest pipeline imports from Russia. It has coincided with gas prices rising more sharply than coal and thus led to an increased incentive to burn coal at the expense of gas for power generation.

“Coal as an expensive substitute, especially in Europe given the need to buy pollution offsets via emission futures, is likely to continue into the winter period,” Ole Hansen, head of commodities research at Saxo Bank, told CNBC via email.

“This in response to low gas stock levels both in the US and Europe following a high demand season driven by extreme heat and economic activity,” he continued. “All in all, coal is in demand despite raised focus on climate change.”

Hansen said this was simply due to the lack of supplies from coal’s biggest competitor: natural gas.

Financing coal projects to become more difficult

“I’m reluctant to get into how this is going to continue to play out over the next few months. I think things are fairly fluid in terms of the impact of the virus on various economies and it doesn’t take much of a slowdown for things to really start impacting a commodity like coal,” Seth Feaster, energy data analyst at IEEFA, a non-profit organization, told CNBC via telephone.

“One thing I can say is that prices have been very volatile. And from a U.S. perspective, when coal companies talk about exports being their savior, we find that pretty suspect because volatility makes it very difficult for coal companies to have any kind of long-term plan around thermal coal exports.”

Smoke and steam rises from the Bayswater coal-powered thermal power station located near the central New South Wales town of Muswellbrook, New South Wales, in Australia.

David Gray | Getty Images News | Getty Images

Feaster said that while some countries appeared hesitant to move away from coal, it is becoming “abundantly clear” that financing for coal projects is drying up. “It is going to be very difficult going forward to fund any kind of new power projects for coal,” he continued.

“I think that that’s really going to become a pariah around the world for anybody to finance coal projects. It is going to become more expensive and more difficult.”

Environment

NYC debuts Bronx EV fast-charging hub for taxis and residents

Published

17 hours ago

October 17, 2025

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NYC debuts Bronx EV fast-charging hub for taxis and residents

New York City just brought another EV fast-charging station online, this time in the Bronx, one of the city’s most underserved areas for clean transportation.

The New York City Department of Transportation (NYC DOT) has opened a new public fast-charging station at its White Plains Road Municipal Parking Field in the Bronx Park East section of the borough, at 2071 White Plains Road.

The site includes four DC fast chargers, three 50 kW units, and one 175 kW unit, which can give most EVs an 80% charge in about 20 minutes. Four additional Level 2 chargers can fully charge most vehicles in six to eight hours.

This new Bronx hub sits in a community with one of the city’s highest concentrations of Taxi and Limousine Commission (TLC) drivers. Nearly 1,000 TLC-licensed drivers live nearby, and another 1,500 live in adjacent neighborhoods. TLC drivers can sign up through the EV Connect app for a 15% discount on charging fees.

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“Achieving a greener transportation future means investing in electric vehicle chargers that will help us say goodbye to fossil fuels,” said NYC DOT Commissioner Ydanis Rodriguez, a former cab driver himself. “East Bronxites will benefit significantly from these new EV chargers, and we look forward to continuing this critical work to fulfill the Adams administration’s ambitious goals.”

Those goals include the Green Rides Initiative, which aims to make all high-volume for-hire vehicle trips zero-emission or wheelchair-accessible by 2030. The new Bronx station also moves the city closer to Mayor Adams’ PlaNYC target of ensuring that every New Yorker lives within 2.5 miles of a fast charger by 2035. With this latest installation, the share of New Yorkers who live near a fast charger jumps from 81% to 88%.

The Bronx currently has the fewest fast chargers of any borough, and most of the city’s existing stations are concentrated in higher-income areas of Manhattan and inner Brooklyn and Queens. NYC DOT says this new location is part of a push to make EV charging more equitable and accessible.

As of September 2025, 79,036 EVs are registered in New York City – about 25% of New York State’s EVs.

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Environment

The Hyundai IONIQ 5 is still a great deal

Published

17 hours ago

October 17, 2025

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The Hyundai IONIQ 5 is still a great deal

The 2025 Hyundai IONIQ 5 was one of the most affordable EVs you could lease in the US. Although the $7,500 EV credit has now expired, Hyundai is keeping the savings going with the 2026 model.

Hyundai extends EV deals for the 2026 IONIQ 5

Hyundai reduced prices on the 2026 IONIQ 5 by up to $9,800 earlier this month compared to the outgoing model. Starting at under $35,000, it’s now one of the most affordable EVs, putting it on par with the Chevy Equinox EV.

The Hyundai IONIQ 5 remains a top-selling EV in the US, and may still be your best bet if you’re looking to go electric.

You can still lease the new 2026 Hyundai IONIQ 5 SE Standard Range for as low as $289 per month. That’s only $10 more per month than before the $7,500 federal EV tax credit expired at the end of September. The offer is for a 24-month lease with $3,999 due at signing.

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However, upgrading to the longer-range SE trim might be an even better option. The 2026 IONIQ 5 SE is listed at just $299 per month, even though it costs $2,500 more than the base model at $37,500.

The standard range model has an EPA-estimated driving range of 245 miles, while the SE trim offers considerably more, at up to 318 miles. For just 10$ more per month, a 30% improvement in range is a pretty sweet deal.

Hyundai is offering $4,500 in lease cash on the longer range 2026 IONIQ 5 SE, compared to just $750 for the base model.

Hyundai IONIQ 5 Trim	Driving Range (miles)	2025 Starting Price	2026 Starting Price*	Price Reduction
IONIQ 5 SE RWD Standard Range	245	$42,600	$35,000	($7,600)
IONIQ 5 SE RWD	318	$46,650	$37,500	($9,150)
IONIQ 5 SEL RWD	318	$49,600	$39,800	($9,800)
IONIQ 5 Limited RWD	318	$54,300	$45,075	($9,225)
IONIQ 5 SE Dual Motor AWD	290	$50,150	$41,000	($9,150)
IONIQ 5 SEL Dual Motor AWD	290	$53,100	$43,300	($9,800)
IONIQ 5 XRT Dual Motor AWD	259	$55,500	$46,275	($9,225)
IONIQ 5 Limited Dual Motor AWD	269	$58,200	$48,975	($9,225)

2025 vs 2026 Hyundai IONIQ 5 prices and range by trim

For those looking to save a little extra, Hyundai is still offering $11,000 in retail cash on 2025 IONIQ 5 models and 0% APR financing for 72 months. The 2025 IONIQ 5 can be leased from $189 per month until November 3. The offer is also for 36 months with $3,999 due at signing.

Interested in test-driving Hyundai’s electric SUV? You can use our link to find Hyundai IONIQ 5 models at a dealership near you.

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ZEVs capture record 29.1% of California’s new car market in Q3

Published

18 hours ago

October 17, 2025

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ZEVs capture record 29.1% of California’s new car market in Q3

ZEVs California — The California Dune Edition of the R1S / Source: Rivian

Californians just set another record for zero-emission vehicle (ZEV) adoption. In Q3 2025, residents bought 124,755 ZEVs – that’s nearly 1 in 3 new cars sold statewide. The 29.1% market share marks California’s highest quarterly total of ZEVs yet.

Governor Gavin Newsom called the milestone proof that Californians are all-in on clean transportation, even as the federal government moves in the opposite direction. “We’re nearing a third of all new vehicles sold in the fourth-largest economy on the planet being clean cars,” he said. “While Trump sells out American innovation to China, California will keep charging ahead on our path to a future of cleaner air.”

California Energy Commissioner Nancy Skinner added that the state’s massive charging expansion is paying off. Thanks to new investments, nearly every Californian now lives within 10 minutes of an EV fast charger. “Now, new EV owners can enjoy a great driving experience, bidding goodbye to smelly gas stations, messy oil changes, and costly engine tune-ups,” she said.

The state’s ZEV market is also growing more diverse. In Q1 2024, there were 105 ZEV models available; by Q1 2025, that number had climbed to 146. Of the 124,755 ZEVs sold in Q3, 108,685 were fully electric, nearly a 30% jump from Q2 2025.

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