The lack of timely coal consumption data on a monthly basis – at least at a global level – makes it difficult to determine changes in coal demand in the short term. Our new Capital Economics World Coal Demand Proxy (CDP) shows that the recent jump in coal prices was primarily driven by strong demand for
electricity. However, with the factors behind demand growth being temporary, and supply set to rise,
we expect the price of coal to fall back in the coming months.
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