Though coal has a uniform colour, it has varying qualities for different uses. This year the world has focused on the surging demand for thermal coal used to generate electricity as Russia’s energy squeeze on Europe made prices soar.

At the same time the price of that used in steelmaking, known as metallurgical or coking coal, has collapsed. This has led to the rare situation of coking coal trading at a price discount to its sibling thermal. For the former price reflects a lack of demand, the latter one of supply. This split in fortunes will not last.

Europe’s travails over a lack of Russian gas have increased demand for thermal coal and driven its cost there up by more than 40 per cent during the second quarter. Not only has hard coking coal — that most sought after by steelmakers — failed to keep pace, its price has dropped nearly as much in percentage terms. The gap between the two had expanded to $215/tonne this month (using Australian benchmark prices), points out BMO Capital Markets. That has not occurred in at least a decade.