Global Markets

North Korea crisis could alter energy trade flows

The diplomatic tensions in Northeast Asia are having an effect on the coal market and could also disrupt the flow of other fuels The diplomatic tensions in Northeast Asia are having an effect on the coal market and could also disrupt the flow of other fuels.
By Peter Stewart 11 September 2017 0 27532
Test launch of a Hwasong-12 intermediate range missile in August What Pyongyang says is the test launch of a Hwasong-12 intermediate range missile in August. (PA)

The North Korean crisis has already had a significant impact on the coal trade in northern Asia. If the crisis escalates, it could result in more dramatic changes in global commodity flows even if the standoff does not result in direct conflict.

China’s commerce ministry banned imports of coal, iron, lead and iron ore from North Korea after the UN imposed new sanctions on Pyongyang in mid-August. The embargoes were a response to a series of missile tests and, more recently, the detonation of a hydrogen...