Newcastle Coal Futures ($US/MT)

Coal futures were strong last week, underpinned by ongoing Middle East supply disruption concerns.  In the short term they look likely to dance in tandem with oil prices with a test of the $US140/MT looking likely this week, basically a doubling in price from the lows of 2025. In the bigger picture we see ongoing strength in the energy complex as surging AI demand weighs on supply – the likes of oil & gas, coal and uranium are likely to take it in turns to deliver the best performance.

• We can see coal consolidating around $US140/MT in the coming weeks adding a tailwind to the related stocks.