08 JUL, 2026 BY THOMAS JOHNSON
The UK’s shadow energy minister Claire Coutinho has called out the National Energy System Operator (Neso) for allegedly avoiding having to keep an “audit trail or records of how key operational decisions are made”.
In a letter to the Information Commissioner dated 7 July and posted today on Coutinho’s socials, she requests an investigation into the issue, claiming she was contacted by a whistleblower working for Neso.
“A whistleblower in the heart of our electricity grid operator has contacted me with serious allegations that the Neso has been hiding information about how securely our grid is being run,” Coutinho said.
The situation began in June, according to Coutinho, when she raised concerns in Parliament about the security of the UK’s electricity grid. She alleges she was told by Ed Miliband that she was “scaremongering”.
“Since then I have been contacted by a whistleblower within our grid operator, the Neso,” Coutinho continued.
“They allege that operators are being instructed to hide information that shows the grid is not being operated securely.
“Worse, they allege that Corporate Affairs interfered with operational decisions to stabilise the grid – risking blackouts to protect Neso’s reputation.”
Coutinho brought the allegations to the House of Commons and claims Miliband “doubled down” on calling this scaremongering when quizzed on the situation.
“This government is asleep at the wheel. They must urgently investigate these allegations,” Coutinho said in Parliament.
She further stated the whistleblower alleges that “during periods of system stress, senior Neso managers have instructed operators in the control room to keep ‘live documents’ with no version history”.
Coutinho alleges this is done to make sure there are no records of how key operational decisions are made and “ensure that full records are not preserved for the purposes of Freedom of Information (FoI)”.
“Concerningly, whistleblowers allege that this approach was in place during an incident on Tuesday 23 June 2026, where the frequency of the system became unstable and fell below Neso’s normal operating frequency limit of 49.80Hz,” she continued.
“This is a serious matter because if such frequency instability is sustained, blackouts can occur.
Staff at Neso’s Corporate Affairs Directorate allegedly interfered in operational decisions to urge that certain operational stabilising actions were not taken, in order to avoid damage to Neso’s reputation.
“Due to the use of ‘live documents;, these interventions were not recorded for public record.”
Coutinho claims this is of serious consequence as the UK’s electricity grid is becoming “increasingly unstable and difficult to manage”.
She said that decisions are appearing to be taken within Neso to avoid the disclosure of information that could be used to determine whether the operator “is capable of maintaining operability within the Security and Quality of Supply Standard (SQSS)”.
In response to these allegations, Coutinho is demanding government:
Neso has issued a statement to NCE contending Coutinho’s claim.
A Neso spokesperson said: “Despite unprecedented weather conditions across Great Britain and Europe in June, the GB electricity system remained secure and no customers were disconnected. We will continue our analysis of operational data and implement any lessons learned.
“All operational decisions are taken by authorised personnel within established procedures and it would be false to say otherwise.
“Neso does not instruct its employees to avoid retaining records. Our priority is the secure operation of the GB electricity system.”
The operator further stated that high temperatures across the UK and continental Europe, alongside lower wind generation and reduced availability from some generation assets, created tighter electricity margins than would normally be expected this time of year.
As a precaution, Neso issued Electricity Margin Notices (EMNs) to encourage additional generation capacity to make itself available to the market. The market responded and electricity supplies remained secure throughout and the EMNs were subsequently withdrawn.
An EMN is a standard operational tool used by Neso’s control room. It is designed to notify the market that additional generation capacity may be required and encourage market participants to make any available capacity known, according to Neso. It does not mean electricity supplies are at risk and is not a warning of power cuts.
Alongside the EMNs, Neso also claimed it used a range of operational tools to maintain security of supply, including coordinating with neighbouring European transmission system operators through existing arrangements.
CENTCOM said it struck more than 80 Iranian targets on Tuesday.
ByMichelle Stoddart and David BrennanJuly 8, 2026, 2:58 PM
ANKARA and LONDON -- President Donald Trump said on Wednesday morning that he believes that the interim agreement reached with Iran last month is "over," following an intense exchange of fire between the two sides on Tuesday into Wednesday morning.
Trump huddled with top advisers on Tuesday while attending the NATO summit in Ankara, Turkey, to discuss the U.S. response to several fresh attacks on commercial ships in the Strait of Hormuz early this week, multiple people familiar with the discussions told ABC News.
The U.S., Qatar and Saudi Arabia attributed the attacks to Iranian forces, allegations denied by Tehran.
Speaking with reporters in Ankara on Wednesday during a press conference alongside NATO Secretary General Mark Rutte, Trump said that negotiations between the U.S. and Iran will continue, but said of the agreement, "For me, I think it's over."
President Donald Trump holds a meeting with Turkish President Recep Tayyip Erdogan at the Bestepe Presidential Compound in Ankara, Turkey, on July 7, 2026.Saul Loeb/AFP via Getty Images
"I don't want to deal with them anymore. They're scum. You know what scum is? They're scum. They're sick people. They're led by sick people," Trump said of Iran's leadership in response to a question from ABC News.
"And they're vicious, violent people. And if they had a nuclear weapon, they'd use it. As far as I'm concerned, it's over," the president continued. "There's something wrong with them, they're cuckoo," Trump added.
The president did, however, suggest that U.S.-Iranian negotiations over a final peace deal could continue.
The 14-point MOU committed the signatories to the reopening Strait of Hormuz for commercial traffic, with the U.S. lifting its naval blockade of Iranian ports. Iran also committed not to pursue nuclear weapons -- a commitment Tehran has previously made -- while the U.S. agreed to allow Iranian oil sales and to begin work on a $300 million reconstruction fund for the country.
Under the MOU, fighting -- including between Israel and the Tehran-backed Hezbollah militia in Lebanon -- would stop for 60 days while the U.S. and Iran negotiate the terms of a final deal, which would cover issues including Iran's nuclear material.
A still photo from a video released by U.S. Central Command showing the latest round of U.S. airstrikes.U.S. Central Command
"I'll speak to our negotiators. They want to negotiate. They're good people. Steve Witkoff, Jared Kushner, but they have to come back to me. As far as I'm concerned, it's just a waste of time dealing with them," Trump said on Wednesday.
"I'll let our wonderful negotiators keep talking if they want, but I don't see it," Trump said later in the press conference, adding that he did not care whether talks continued after funeral proceedings for slain Supreme Leader Ayatollah Ali Khamenei concluded.
When the MOU was signed last month, Trump said the deal "achieves everything we set out to accomplish, everything and much more." But key issues, including the status of Iran's nuclear program, remained unaddressed.
The White House has demanded an end to all Iranian enrichment of uranium, a proposal repeatedly rebuffed by Tehran, which says it needs to enrich uranium to power its civil nuclear power network.
President Donald Trump meets with NATO Secretary General Mark Rutte on the sidelines of NATO meeting at the Bestepe Presidential complex, in Ankara, Turkey, Wednesday, July 8, 2026.Alex Brandon/AP Photo
On Wednesday, the president again said his administration would accomplish the "denuclearization of Iran."
"We're going to de-nuke it. We're not going to let them, because they're crazy, and they can't have a nuclear weapon," Trump said.
Intermittent exchanges of fire have continued between the U.S. and Iran despite the signing of the MOU in June.
Since Monday, U.S. Central Command said Iran had attacked three commercial vessels transiting the Strait of Hormuz.
CENTCOM said it then launched retaliatory strikes on more than 80 Iranian targets, including air defense systems, command and control networks, coastal radar sites, anti-ship missile capabilities and small boats.
People attend a funeral procession for Iran's late Supreme Leader Ayatollah Ali Khamenei, who was killed on February 28 in Israeli and U.S. airstrikes, in Tehran, Iran July 6, 2026.Office Of The Iranian Supreme Leader via Reuters
The U.S. also revoked a license that authorized the sale of Iran oil under the MOU in response to the tanker attacks, with one U.S. official telling ABC News that the incidents were "wholly unacceptable."
Iran's military said on Wednesday that it responded to the renewed American strikes by attacking 85 U.S. military sites in Kuwait and Bahrain.
Trump on Wednesday lauded what he called the "powerful" U.S. strikes, adding, "We hit them very hard."
"I told them every time you hit, we hit, and of course they're dirty players, so they go after everyone, probably including me," the president continued, referring to alleged Iranian assassination plots in which Trump said he remains a target.
"They want to take out the U.S. leader -- me. I'm on every list. I saw things this morning, I'm on every single one of their lists, and so far I guess I've been a little bit lucky, but that maybe doesn't last very long, because that's the way it goes," Trump said.
A cargo ship is pictured off coast of the Khor Fakkan Container Terminal along the Gulf of Oman on June 28, 2026.-/AFP via Getty Images
Mohammad Bagher Ghalibaf, the speaker of the Iranian parliament who has been serving as Tehran's chief peace negotiator, said in a post to X early on Wednesday that the U.S. had violated the MOU with its latest strikes.
"The era of bullying and extortion is over. It leads nowhere. We don't fold," Ghalibaf wrote.
Oil prices spiked on Wednesday after Trump's comments, with U.S. oil trading at $74.62, up around 6%, and global oil at $78.70, up more than 6%. The price of global oil is still significantly down on a high of nearly $120 last month before the MOU was announced.
Traffic has been moving through the Strait of Hormuz in recent weeks, including through Tuesday despite the latest attacks on ships. Data from Kpler, a global energy analytics firm, showed more than 100 transits of ships through the Strait between July 5 and July 7, including 41 crossings on July 7.
ABC News' Rachel Scott, Karen Travers, Justine Fishel, Isabelle Murray, Sarah Kolinovsky and Zunaira Zaki contributed to this report.
By Julianne Geiger - Jul 08, 2026, 9:37 AM CDT
Crude oil inventories in the United States saw a surprise increase of 3.0 million barrels during the week ending July 3, according to new data from the U.S. Energy Information Administration (EIA) released on Wednesday. The increase brings commercial stockpiles to 411.4 million barrels, according to government data, which are now 6% below the five-year average for this time of year.
The EIA’s data release follows API’s figures that were released a day earlier, which reported that crude oil inventories saw a small draw of 399,000 barrels in the period.
Crude futures were up in early morning trading as US President Donald Trump announced that the ceasefire with Iran was over, following Iranian attacks on tankers in the Strait of Hormuz. At 8:45 a.m. in New York, Brent futures were trading at $77.37 per barrel—up $3.21 (+4.33%) on the day and up more than $5 per barrel from this same time last week. WTI was also trading up on the day, by $2.97 per barrel (+4.22%) on Wednesday morning at $73.41.
For total motor gasoline, the EIA reported that inventories had decreased by 1.9 million barrels, compared to the week prior’s 2.3 million barrel build. The most recent figures showed that average daily gasoline production decreased to 9.7 million barrels. For middle distillates, inventories decreased by 5.0 million barrels with production decreasing to an average of 5.2 million barrels daily. Distillate inventories are now 12% below the five-year average.
Total products supplied—a proxy for U.S. oil demand—averaged 20.6 million barrels per day over the last four weeks, up 0.3% compared to the same period last year. Gasoline demand averaged 9.0 million barrels per day over the last four weeks, while the distillate four-week average supplied averaged 3.8 million barrels—down 0.9% year over year.
By Julianne Geiger for Oilprice.com
https://oilprice.com/Energy/Crude-Oil/EIA-Crude-Oil-Inventories-in-US-See-Rare-Build.html
This would mark the third time that gas demand has fallen year-on-year since 2020.
The drop has largely been driven by the closure of the Strait of Hormuz, through which 20% of the world’s total supply of liquefied natural gas (LNG) typically flows. From March to June, LNG supply from Qatar and the United Arab Emirates dropped by around 80% compared with the same four-month period in 2025.
Across OECD European countries, natural gas consumption fell by around 0.5% (or less than 1 bcm) in the first half of 2026, largely driven by lower gas consumption from the power sector as renewable generation grew.
Although LNG projects in North America and Africa ramped up production in response to the shortage, and feedgas supply from legacy producers in Africa, Asia and Russia improved, global LNG production still fell by 4% (or 8 billion cubic metres (bcm)) from the year before.
As a result of the sudden supply shortage, wholesale natural gas prices more than doubled, and oil prices have repeatedly spiked since the US and Israel first attacked Iran on 28 February, resulting in Iran effectively closing the Strait.
The estimated drop in overall gas demand is based on the assumption that the Strait remains fully open for the rest of the year, following an interim agreement being reached between Iran and the US last month, and that many normal gas production and transport operations in the Middle East resume. Uncertainty in the market will nonetheless persist, with demand still expected to drop by 20 bcm overall year-on-year.
The gas market: A continued decline
According to think tank Ember, almost half of the world’s gas-producing nations have now surpassed “peak” generation, with the share of gas in the global electricity mix falling for the fifth consecutive year in 2025.
In total, 61 out of 124 countries that generate electricity from gas have passed their “peak” point, including the UK, Germany, Italy and Japan.
Since 2020, the percentage of gas in the world’s energy mix has fallen from 23.9% to 21.8% last year.
“The economics and energy security case for electricity are increasingly moving in the same direction,” Ember’s senior electricity analyst Malgorzata Wiatros-Motyka said.
“As renewables lower costs while reducing exposure to fuel price shocks and geopolitical disruptions, gas is steadily losing the advantages that once made it the default fuel for power system growth.”
https://www.edie.net/iea-global-gas-demand-set-to-drop-0-5-this-year/?amp=true
By Irina Slav - Jul 09, 2026, 3:15 AM CDT
A week after it warned that an oil glut is coming, Goldman Sachs has done a U-turn, warning that the renewed hostilities in the Persian Gulf threaten an extended supply disruption.
“While Middle Eastern producers have started reopening their shut-in wells over the last month, Hormuz disruptions could slow down the production recovery,” the bank’s commodity analysts said, as quoted by Bloomberg. They added that Middle East oil production remains 10.5 million barrels daily below pre-war levels.
“The recent attacks on tankers highlight still elevated risks of crossing, and shippers may hesitate to cross under the currently unclear ceasefire status, weighing on near-term Hormuz flows,” the analysts also wrote, noting that prior to the latest escalation, oil flows had recovered to 80% of pre-war levels but were now down to 70% of those levels. Chances are the reversal will intensify, with Bloomberg reporting earlier today that there was no observable tanker traffic in the Strait of Hormuz, except for a U.S.-sanctioned Very Large Crude Carrier.
Last week, Goldman said that the coming global race to rebuild depleted oil inventories would not be enough to offset a massive glut that’s coming to the market next year, as traffic through the Strait of Hormuz appeared to be headed toward normalization. The assumption that the tanker traffic recovery is irreversible appeared to have been wrong.
Stockpiles of crude and refined petroleum products in many parts of the world have been depleted to multi-decade lows after governments raced to release strategic stockpiles in March after the Middle East crisis trapped millions of barrels of daily crude and product flows in the Persian Gulf. This led some analysts to predict an extended period of elevated oil prices as countries sought to refill their oil storage facilities while oil producers in the Gulf restarted wells.
Greatland Resources Ltd (AIM:GGP, OTC:GRLGF, FRA:G8G, ASX:GGP) has strengthened its executive leadership team with the appointment of experienced mining engineer Nick Strong as chief operating officer, as the company advances its integrated Telfer-Havieron mining hub in Western Australia.
Strong will join Greatland on October 5, 2026, taking responsibility for Telfer and Havieron operations, including oversight of the brownfield Havieron underground mining development.
Experienced operator joins at growth phase
Strong brings more than 25 years of operational and leadership experience across the mining industry, with a background spanning gold, base metals and other commodities.
His career includes senior roles with Northern Star Resources, Rio Tinto and Newcrest Mining, with experience managing large-scale underground and open pit mining operations, including at KCGM and Cadia.
Most recently, Strong served as general manager – Hemi & KCGM Growth at Northern Star Resources, where he directed approvals and operational growth workstreams after previously leading KCGM operations.
Greatland said Strong would work closely with Telfer general manager Mark Benson to maintain consistent mining and processing performance at Telfer while supporting delivery of Havieron's development pathway.
Otto Richter moves into CTO role
The leadership changes will also see Otto Richter transition from acting chief operating officer to chief technical officer when Strong starts in October.
Richter joined Greatland in 2021 as group mining engineer and led technical due diligence for the acquisition of Telfer and Havieron. He has since been responsible for strategic mine planning and Ore Reserves compilation.
In his new role, Richter will focus on advancing Greatland's growth strategy through strategic mine planning and technical studies, including work on projects such as West Dome Underground.
"Exciting time" for Greatland
Greatland managing director Shaun Day said Strong was joining the company at an important point in its growth journey.
"I am delighted that Nick will be joining Greatland as our Chief Operating Officer. Nick joins at an exciting time and is very well placed to lead our operations and substantial growth projects," Day said.
"Nick has deep experience in overseeing large-scale underground and open pit gold and copper mines across Australia, and in planning and delivering large scale development projects."
Day also acknowledged Richter's contribution as acting COO, citing his role in delivering a strong FY26 and significant resource and reserve updates.
https://uk.finance.yahoo.com/news/greatland-resources-strengthens-leadership-team-000000872.html
BHP on Wednesday awarded a contract worth more than A$200 million ($138.80 million) to China Nerin Engineering to design and supply key processing facilities in South Australia.
The contract is a part of BHP’s proposed smelter and refinery expansion project in South Australia, the company said.
China Nerin Engineering, a metallurgical engineering design firm, will execute the contract in stages as BHP advances studies on the project ahead of a potential final investment decision (FID) in 2027.
The supply part of the agreement depends on BHP approving the FID on the smelter and refinery expansion, it added.
The contract is tied to BHP’s planned expansion of the Olympic Dam smelter and refinery and is central to its plan to boost copper production in South Australia to 500,000 metric tons a year through the 2030s.
China Nerin Engineering said in a separate statement that completion is set for early 2032.
($1 = 1.4409 Australian dollars)
(By Keshav Singh Chundawat; Editing by Sonia Cheema)
One of the most significant developments in the European aluminium industry in recent years has emerged from Slovakia. Hydro, the Norwegian-based global aluminium producer, has announced an agreement with the Slovak government to restart primary aluminium production at the Slovalco smelter, in which it holds a majority stake. Production at the facility was suspended in 2022 due to the European energy crisis. The decision to resume operations is regarded as an important step toward strengthening Europe's strategic raw material supply and reducing its dependence on imports.
Under the agreement, an initial annual production capacity of 75,000 tonnes of primary aluminium will be brought back online. The smelter's total production capacity stands at 175,000 tonnes, while the remaining capacity is expected to be restored after 2030, depending on long-term energy market conditions and electricity supply agreements.
Hydro has announced an investment of approximately EUR 100 million to restart the facility. The project is also expected to support more than 200 jobs in the region. Production is scheduled to resume during the fourth quarter of 2026, subject to approval by the European Commission of Slovakia's indirect carbon cost compensation mechanism.
The restart of Slovalco is considered strategically important not only for Slovakia but also for the entire European aluminium industry. Since the energy crisis began, nearly 50 percent of Europe's primary aluminium production capacity has been idled due to soaring electricity costs. This has significantly increased Europe's reliance on imported aluminium while weakening the competitiveness of its manufacturing sector.
According to Hydro President and CEO Eivind Kallevik, aluminium is a strategic material for numerous industries, including energy infrastructure, transportation, defence, renewable energy, and sustainable construction. He emphasized that restarting Slovalco will strengthen Europe's industrial resilience while increasing the supply of low-carbon aluminium to the market.
Industry analysts believe this development could mark the beginning of a new phase for European aluminium production. Long-term energy security, competitive electricity pricing, and supportive industrial policies are expected to play a decisive role in restoring Europe's primary aluminium capacity and improving its global competitiveness.
One of Africa's largest asset managers is making a contrarian bet on Indonesia, snapping up equities in what has become the world's worst-performing stock market after a prolonged selloff sent investors rushing for the exits.
According to Bloomberg, Johannesburg-headquartered Ninety One, which manages approximately $29 billion in assets, has started buying Indonesian stocks after a sharp decline left valuations at levels the firm considers attractive.
Indonesia's benchmark Jakarta Composite Index has fallen more than 35% in U.S. dollar terms this year, making it the weakest-performing equity benchmark among the 92 stock indexes tracked by Bloomberg.
The downturn accelerated during the recent Iran conflict as investors reduced exposure to riskier emerging markets.
However, the market's troubles began months earlier after MSCI Inc. warned in January that Indonesia could lose its emerging market status because of concerns over investability, including the limited supply of freely tradable shares in many listed companies.
The warning triggered sustained foreign investor outflows and weighed heavily on market sentiment.
Rather than following the crowd, Ninety One believes the selloff has created a buying opportunity, betting that the market's decline has become disconnected from the long-term outlook of many Indonesian companies, Bloomberg reported.
A rare example of African capital going global
The move highlights the growing international reach of African asset managers, which are increasingly deploying capital well beyond the continent in search of undervalued opportunities.
While global investors have largely retreated from Indonesia amid concerns over liquidity, governance and geopolitical uncertainty, Ninety One's investment reflects a classic contrarian strategy—buying assets when sentiment is overwhelmingly negative in anticipation of a future recovery.
Indonesia remains Southeast Asia's largest economy, with a population of more than 280 million people and abundant reserves of critical minerals such as nickel, making it a key player in global electric vehicle supply chains despite its recent market struggles.
For African investors, the decision also highlights how large institutional fund managers are broadening their geographic exposure as they seek returns across emerging markets rather than concentrating solely on domestic or regional assets.
Whether the gamble pays off will depend on Indonesia's ability to restore investor confidence and address the concerns raised by MSCI.
In May this year, US steelworks increased shipments of steel products by 6.2% month-on-month to 8.14 million short tonnes, according to the American Iron and Steel Institute (AISI).
Compared with the same period last year, this figure rose by 8.5%.
In January–May, shipments totalled 38.99 million tonnes, which is 4.6% more than in the same period of 2025. Supplies of corrosion-resistant sheet and strip rose by 13% year-on-year during the period, whilst hot-rolled steel rose by 6% and cold-rolled steel fell by 1% year-on-year.
It should be noted that shipments of steel products from US steelworks rose by 4.9% in 2025 compared with 2024, reaching 90.95 million short tonnes. Compared with 2024, shipments of corrosion-resistant sheet rose by 4%, hot-rolled sheet by 1%, whilst cold-rolled sheet fell by 4 per cent.
As reported by GMK Center, the US imported 6.7 million short tonnes of rolled steel in January–May 2026, down 26.8% year-on-year. Total steel imports for the first five months of this year, including rolled steel and semi-finished products, amounted to 9.12 million tonnes (-26.3% year-on-year).
In May, total steel imports into the US reached 2.1 million tonnes, an increase of 11.2% compared with the previous month, including 1.55 million tonnes of rolled steel (+11.2% month-on-month).
The market share of imported rolled steel in May is estimated at 17%, and for the first five months of 2026 at 16%.
https://gmk.center/en/news/steel-shipments-to-the-us-rose-by-6-2-m-m-in-may/amp/
The DCE iron ore futures moved weakly today, with contract I2609 closing at 746 yuan/mt, up 0.88% from the previous trading day. Port spot prices rose about 5-7 yuan/mt from the previous trading day. Trader activity was mediocre; steel mills purchased as needed. As of now, spot trading sentiment was lackluster.
The latest SMM survey data further confirmed the weakening trend in iron ore demand. According to statistics, the national blast furnace operating rate fell to 89.78%, and daily average pig iron production dropped to 2.4406 million mt, down 15,400 mt MoM. Furthermore, affected by the commemorative activities in Tangshan, local environmental protection-related maintenance intensity is expected to increase, and the weakening momentum of hot metal is expected to have room to intensify. In the short term, the bearish fundamentals are worsening, but considering the currently high proportion of short positions in the futures market, selling pressure is nearly exhausted and the downward momentum on prices has begun to weaken. Short-term iron ore prices may move sideways. Subsequently, watch for short covering to drive a price rebound [SMM Steel].
“In June 2026, global coal shipments jumped 14% y/y, driven by a 41% y/y increase in coal shipments to China, as the country looked to offset weaker domestic supply and to meet higher demand from electricity generation. Since the start of the year, global coal shipments have risen 3% y/y, a reversal of last year’s trend, when they fell 4% y/y,” says Filipe Gouveia, Shipping Analysis Manager at BIMCO.
So far this year, coal shipments to China have fallen 3% y/y, only accelerating from May 2026. This increase was driven by a weakening in China’s domestic coal production, partly due to a mining accident in Shanxi on 28 May 2026. Following the incident, 109 mines in Shanxi were temporarily shut down and safety inspections were carried out. Some of those mines started reopening in June, but output appears to still be lagging pre-accident levels.
Coal shipments to Korea, Japan and the EU remained strong in June, rising 25%, 13% and 15% y/y, further supporting global volumes. These countries have sought alternative energy supplies amidst a tightness in LNG shipments since March 2026, due to the transit disruptions in the Strait of Hormuz.
“The rise in coal volumes has had a positive impact on the dry bulk market, and particularly on the panamax segment, as coal accounted for around half of the segment’s tonne mile demand in June. This contributed to a strengthening in freight rates for the segment, with S&P Global Energy’s Platts KMAX 9 index rising 73% y/y in June,” says Gouveia.
On the export side, Indonesia and Russia saw the largest increases in shipments, rising 12% and 33% y/y in June. While the Indonesian government initially set a 600m tonne coal production target for the year, 24% below 2025 levels, it announced in June that the quota would be expanded.
The outlook for coal shipments during the rest of this year appears mixed. Coal production in China could strengthen once inspections come to an end, which would negatively impact import demand. Conversely, the arrival of El Niño is expected to have a positive impact on coal demand in India and Southeast Asia. This is because El Niño tends to bring a weaker monsoon, and has already caused India’s dryest June in 12 years. This in turn has a negative impact on hydroelectric power generation in the region.
“Conditions in the Strait of Hormuz remain a key uncertainty for the outlook for coal shipments, since a full and lasting reopening of the strait could weaken coal import demand in markets such as Korea, Japan and the EU. The US-Iran ceasefire agreement has already led to an increase in the number of ships transiting the strait, but operational and security challenges persist. Furthermore, a sustained return to normal transit conditions could still depend on a final peace agreement,” says Gouveia.
https://www.drycargomag.com/coal-shipments-jump-14-percent-in-june-driven-by-chinese-demand
