BofA warns coal prices could surge to $350
Bank of America (BofA) has warned that supply shortages in the global natural gas market could trigger a sharp increase in coal prices.
According to the bank, coal prices could climb to as much as $350 per metric ton if disruptions to natural gas supplies persist and energy producers increasingly turn to alternative fuels. Such a scenario could intensify cost pressures across global energy markets.
As benchmark natural gas prices in Asia rise above $30 and European prices exceed €90 per megawatt-hour, coal demand has strengthened in countries including South Korea, Vietnam, and Pakistan. Production restrictions in China and a decline of more than 60% in thermal power plant coal inventories in India since March have heightened supply concerns. Production and shipping disruptions in Indonesia, along with sanctions on Russia, are also constraining global coal supplies. BofA warned that limited export capacity could amplify upward pressure on prices in the event of another supply shock.
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