As stated last year, Norway’s trend setting SWF finally disposed of all its shares in Anglo American, Glencore, RWE, Sasol and Vale, some of the biggest names in coal. Due to recent market volatility, it only reported the sale as finalised last week.
Chinese coal production rose 1.3% during Jan-Apr as compared with the same period last year, as the nation continues to drive its coal agenda separately from others. There are already signs that China, South Korea and Japan will steer Covid recovery funds into coal-focused ventures, boosting coal demand in Asia at the expense of renewables.
However, India is moving towards renewables with more vigour, tendering for IPP supply at prices around $50/MWh, significantly lower than new coal-fired plants could deliver. Coal stocks in India remain high but are falling as the country adjusts to its Covid-19 operating rules.
Some industry analysts now believe that around 30-50% of global coal supply is underwater at current prices, although South African producers are largely able to survive thanks to the weak Rand.
Eskom has been able to do valuable short-term maintenance on its fleet, but it is also seeking to further extend the life of its Grootvlei, Camden and Hendrina plants until 2030.