U.S. coal prices surged to the highest in more than 12 years as a global power crisis drives up demand for the dirtiest fossil fuel.
Prices for coal from Central Appalachia climbed more than $10 last week to $89.75 a ton, according to figures released Monday from S&P Global Market Intelligence. That’s the highest since 2009, when a spike in exports boosted domestic prices for the power-plant fuel. Prices in other regions are lower, but have also climbed in recent months.
The economic recovery from the coronavirus pandemic has driven up demand for electricity around the world. That’s led to shortfalls in natural gas, power shortages in Asia and Europe and record-high prices for coal. Miners are struggling to ramp up production as U.S. utilities are burning more, leading to dwindling stockpiles and rising prices.
U.S. miners say prices are likely to remain elevated through next year, and some already have contracts to sell almost all of their expected output for 2022.