The coal used in power stations, not the coal used in steel making. It's cheaper than natural gas. Prices less volatile than other fossil fuels and new age metals needed for renewable energy. Very useful for baseload use, China, India and S… | By atans1 on 02/07/2024 | The coal used in power stations, not the coal used in steel making. It's cheaper than natural gas. Prices less volatile than other fossil fuels and new age metals needed for renewable energy. Very useful for baseload use, China, India and South-East Asia consume three-quarters of global supply, up from a third in 2000—other features of the market make it remarkably stable. Coal is almost entirely used to produce "baseload" power, the type that economies use to move at cruise speed, meaning plants which burn it are almost always on. Its limited use in industry and transport make it less sensitive to the economic cycle than other minerals and fuels. Four-fifths is sold through long-term supply contracts, notes Tom Price of Liberum, a bank, which guarantees the bulk of demand. That is unlike oil, copper and many other commodities, which traders often buy on the spot market before hedging risk by buying derivatives contracts. Most coal is also consumed in the country in which it is produced. Economist article | | | | You can also reply to this email to leave a comment. | | | | |
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