During 2021, the global coal industry not only recovered from the effects of the Covid-19 pandemic, but proved that despite the worldwide negative outlook, coal burnt hotter than ever.
A long-term shift away from
coal-fired power generation seemed possible during the lockdowns in 2020,
bringing forward power plant closures in several countries and increasing the
use of renewable energy. However, post-pandemic fiscal stimulus in developed
nations, occurring as lockdown restrictions were eased, brought power demand to
new highs and with it, the return of thermal coal as the most reliable source
of energy generation.
2021 started with major Chinese
cities reporting blackouts as authorities limited power usage, citing a
shortage of thermal coal. The reports followed rising trade tensions between
Beijing and Canberra, tying coal shortages and blackouts to the unofficial ban China
imposed on Australian coal in October 2020. AME’s Newcastle 6,300 spot price started
2021 averaging US$85.09/t in January, followed by an unprecedented rise in
prices beginning in March, with the Newcastle 6,300 spot price averaging at
US$90.68/t, and ending in October, with the price averaging US$235/t.