MONEY MASTER

Japan is temporarily reversing part of its clean energy strategy, allowing  greater use of coal-fired power plants  to safeguard energy supply amid disruptions caused by the Middle East conflict. Policy Shift to Boost Energy Security The government will permit  less-efficient coal plants to participate in capacity market auctions , expanding available electricity supply. Previously, these plants were excluded as part of efforts to  reduce carbon emissions , but rising energy risks have forced policymakers to prioritise  energy security over climate goals . Energy Shock Drives Strategic Reversal The shift comes as the  closure of the Strait of Hormuz  and disruptions at major LNG facilities strain global energy supply. Japan remains highly exposed: Over 90% of oil imports come from the Middle East LNG supply risks are rising due to regional instability Increasing coal usage is expected to  offset around 500,000 tonnes of LNG demand , helping stabil...

Beijing just fired a serious shot across the bow — and coal markets are paying attention. The  National Energy Administration (NEA)  has kicked off a month-long inspection blitz across China’s top coal-producing provinces, including  Shanxi, Inner Mongolia, Shaanxi, and Xinjiang , targeting rampant overproduction that has driven coal prices to a  four-year low . This is more than just energy market housekeeping — it’s  a clear signal of Beijing’s broader agenda : Tackle industrial overcapacity   Mitigate deflationary risks   Reinforce long-term economic stability What’s Happening China is  facing coal oversupply , with intense competition and weak prices. In response, the NEA is stepping in with surprise audits and production limits. Coal sector joins steel, EVs, and solar in Beijing’s overcapacity crackdown list. Why It Matters While this move may  rebalance the supply-demand equation  over the long term, investors should brace for...

Coal prices in China are expected to face further declines, extending the slump to new lows due to elevated inventories at major transportation hubs. These stockpiles are at near-record-high levels and are more than a third higher than at the same time last year, according to the China Coal Transportation and Distribution Association. This surplus in supply, combined with reduced consumption, is exerting downward pressure on prices, which have already dropped by over 20% in the past year. Key Insights: High Inventories : Aggressive coal buying from China and other Asian importers in the fall, coupled with lower consumption in early 2025, has led to high stockpiles. As a result, miners are now facing challenges in finding demand for their coal, forcing them to cut prices in an effort to sell. Declining Prices : Coal prices have already hit a four-year low, and industry analysts predict that they may fall further in the coming months. Morgan Stanley analysts, including Sara Chan, warned ...