Asian energy squeeze drives coal demand surge

COAL is emerging as an increasingly attractive energy alternative for Asian countries scrambling to replace disrupted oil supplies following the effective closure of the Strait of Hormuz in early March, said Bloomberg News.Stamatis Tsantanis, CEO of Capesize shipping operator Seanergy Maritime Holdings, said China had been restocking coal in large volumes in recent months. “Most importantly, coal is also becoming a strategic commodity for the United States,” he told Bloomberg Television.Asian buyers have turned to alternative energy sources after Persian Gulf supply disruptions cut off access to conventional barrels. China has sharply reduced oil imports and is increasingly producing chemicals from coal rather than crude, according to analysts. The US has emerged as a supplier of last resort for some buyers in the region.Tsantanis also flagged the risk of a strong El Niño further intensifying fuel demand and pushing prices higher across parts of Asia.Seanergy operates vessels carrying iron ore, coal, bauxite and similar bulk commodities, and has no ships currently transiting the Strait of Hormuz. However, higher bunker fuel costs and longer routing to avoid the Red Sea and other contested waterways have increased freight costs.Those elevated transport costs carry consequences well beyond energy markets, Tsantanis said, threatening to raise the cost of moving raw materials needed for infrastructure projects and data centre construction worth trillions of dollars globally.The post Asian energy squeeze drives coal demand surge appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com