Coal is regaining importance as an alternative fuel across Asia as countries respond to oil supply disruptions linked to tensions in the Middle East and restrictions on shipping through the Strait of Hormuz.
According to industry executives, China has significantly increased coal stockpiling while also expanding coal-to-chemicals production to reduce dependence on imported crude oil.
The shift reflects growing concerns over energy security and volatile oil markets. Rising demand is also supporting global coal trade and dry bulk shipping activity.
Shipping industry officials warn that higher fuel costs and longer shipping routes, driven by security risks in the Red Sea and Gulf region, are pushing up freight rates for coal and other bulk commodities.
These higher transport costs could increase the price of raw materials used in major infrastructure and industrial projects worldwide.
Analysts also caution that a potential El Niño weather pattern could further boost electricity demand across Asia, strengthening coal consumption despite ongoing efforts to accelerate the clean energy transition.
