Analysts at Fitch Solutions said that Europe’s plan to reduce its dependence on Russian energy will support the coal market and lead to a recent surge in global coal prices.

The EU started an import ban on Russian coal this month, and it will raise the EU’s demand for coal from Indonesia or Australia. Besides, the EU’s plans to import liquefied natural gas (LNG) to replace natural gas from Russia might squeeze other countries’ import volume of LNG and force them to use more coal.

Therefore, Fitch Solutions largely raised its outlook for Asia’s coal prices this year and 2022-2026, which were higher than the previous estimate.