Rock steady: is coal the new gold?

岩稳如初:煤炭是否成为新的黄金?

Editor's Picks from The Economist

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2024-07-03

6 分钟
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A handpicked article read aloud from the latest issue of The Economist. Today, why the world's dirtiest fuel is a disturbingly safe investment. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+  For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.
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  • The Economist Hello, Mike Bird here, co-host of Money Talks,

  • our weekly podcast on markets, the economy and business.

  • Welcome to Editor's Picks.

  • We've chosen an article from the latest edition of The Economist,

  • which we very much hope you'll enjoy.

  • From some angles, it seems as if thermal coal,

  • the world's dirtiest fuel, is having a tough year.

  • Prices are down a bit.

  • China, which gobbles up over half the world's supply, is in economic trouble.

  • A surge in hydropower generation there is squeezing out the fuel.

  • In May,

  • G7 members agreed to phase out coal plants where emissions are not captured by 2035.

  • Mining stocks are trading at a huge discount.

  • Zoom out a little, however,

  • and it is clear the embers of thermal coal remain uncomfortably hot.

  • Metallurgical coal burnt to produce steel is a much smaller market.

  • Although prices have come down from the peaks reached in 2022,

  • when the standoff between Europe and Russia sparked a global dash for energy,

  • they have stabilised at higher levels than before the war in Ukraine began,

  • even in real terms.