For the Quarter Ending March 2025
North America
In Q1 2025, the coal market in the USA saw varying price trends due to supply constraints, demand shifts, and weather conditions. January experienced a significant 4.4% price increase driven by a polar vortex that disrupted mining operations and reduced production. This weather event, coupled with rising demand from data centres and AI-driven industries, tightened coal supply, pushing prices higher. Speculation about potential regulatory rollbacks under the incoming administration further fuelled price hikes, as industries anticipated changes in energy policies.
However, in February, prices dropped by 0.8% as coal supply increased, particularly to meet growing demand from the steel industry, driven by a 25% tariff on steel imports. This boost in domestic steel production required more coking coal, but milder weather and lower electricity demand dampened the price momentum. Although the steel sector's coal demand rose, it wasn’t enough to counterbalance reduced power sector consumption.
By the end of quarter in March, coal prices rebounded with a 3.4% increase as demand from the steel and power sectors remained strong. The rise in crude steel production and a projected record in power consumption supported coal's role in both industries. Despite long-term shifts towards renewables, coal continued to play a key role in meeting industrial and energy needs, resulting in a moderate overall increase for Q1 2025.
APAC
In Q1 2025, Indonesia’s coal market experienced mixed price trends driven by regulatory changes and weather disruptions. January saw a 1.5% price increase, with supply tightening due to heavy rains in key mining regions and a new government regulation requiring coal exporters to retain USD revenues domestically. These factors increased operational costs and limited coal availability, supporting higher prices. International demand, especially from India and Southeast Asia, was strong, further reinforcing price increases, particularly for low-CV coal.
As the quarter progressed, coal prices declined by 2.4%, as supply remained stable, but market uncertainties grew. Weaker demand for medium- and high-CV coal, alongside growing concerns over new regulations and the withholding of export revenues, put downward pressure on prices. Although demand from Chinese buyers for low-CV coal provided some stability, the broader market faced challenges due to shifting global consumption patterns and stockpiles in key markets.
By the end of quarter in March, coal prices dropped by 2.3%, influenced by a downward adjustment of the HBA price indices and competition from cheaper South African coal. Domestic demand remained robust, especially in power generation and stainless-steel production. Despite slower export demand and regulatory uncertainties, Indonesia's domestic market showed resilience, with the government’s focus on coal gasification and other energy projects supporting future coal consumption.
Europe
In Q1 2025, Europe's coal market experienced a notable decline, influenced by a combination of factors including high gas prices, increased renewable energy generation, and a general shift towards cleaner energy sources. The surge in gas prices during January prompted several countries, notably Germany and Poland, to revert to coal-fired power generation, as coal became more cost-effective compared to gas. This switch, while economically motivated, raised concerns about increased carbon emissions due to coal's higher CO2 output compared to gas.
Despite the temporary uptick in coal demand driven by the gas price surge, the broader trend remained downward. The International Energy Agency (IEA) projected a 19% decline in EU coal demand for 2025, primarily due to weak industrial activity and stagnating electricity demand. This decline was further exacerbated by the EU's commitment to reducing reliance on coal, supported by stringent environmental policies and investments in renewable energy infrastructure.
In summary, while Q1 2025 saw a brief resurgence in coal consumption due to high gas prices, the overarching trend in Europe remained one of decreasing coal demand. This shift is indicative of the region's ongoing transition towards cleaner energy sources, despite short-term fluctuations in energy prices.
MEA
In Q1 2025, South Africa's coal market experienced a continuous decline due to weak demand and oversupply. In January, coal prices fell by 1.8%, influenced by supply disruptions from Mozambique, high stockpiles at the Richards Bay Coal Terminal (RBCT), and reduced consumption in the steel sector. The shutdown of ArcelorMittal South Africa’s plants further reduced coal demand, contributing to bearish market conditions.
As the quarter progressed, February saw a deeper drop of 2.8%, with oversupply issues continuing to weigh heavily on the market. Stockpiles increased, and weak demand from key markets like India and the Asia-Pacific region pressured prices. Despite some resilience in Mid-CV coal, the market remained subdued, exacerbated by Sasol’s decision to halt exports in May and logistical challenges.
By the end of quarter in March, prices fell by an additional 1.9%, driven by low demand from international buyers and high domestic stockpiles. While domestic consumption for power generation remained strong, weak international interest and logistical constraints, including disruptions in rail infrastructure, limited price recovery. Overall, the coal market in South Africa saw a total price decline of 6.5% in Q1 2025, reflecting persistent demand issues and supply imbalances across the quarter.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American coal market experienced a quarter-on-quarter decline of 2.3%. Demand for coal remained subdued, primarily due to a reduction in consumption across key sectors, including power generation and steel production. The power generation sector continued to rely more on natural gas and renewable energy sources, resulting in lower coal consumption.
Additionally, rising inventories of coal in power plants, coupled with relatively low natural gas prices, further dampened the demand for coal. In the steel production sector, reduced operating rates and lower steel output also contributed to weak coal demand. Despite geopolitical tensions and fluctuating energy prices, coal remained less competitive as other energy sources gained traction. U.S. coal production saw a continued decline, with production cuts expected in the coming months due to ongoing supply-demand imbalances.
The overall market sentiment was bearish, with coal prices facing downward pressure from excess supply and reduced consumption in both domestic and international markets. This trend is anticipated to persist through the end of 2024.
APAC
In Q4 2024, the coal market in the Asia-Pacific (APAC) region, particularly in Japan, saw a slight uptick in prices, with a quarter-on-quarter increase of 1.6%. This rise was driven by ongoing supply constraints from major exporters, including Australia, amidst terminal maintenance and other logistical challenges. Japan’s coal demand showed mixed trends across sectors. While the power generation sector saw some increased demand due to seasonal energy needs, coal consumption in steel production continued to decline as steel output weakened. The Japanese government’s ongoing shift toward nuclear and renewable energy sources contributed to a reduction in coal usage for power generation. However, Japan's dependence on coal remained significant due to inconsistent nuclear output and the need for stable energy sources. Additionally, while the market saw robust supply from Australia, disruptions such as strikes were short-lived, and concerns over weather-related supply issues were alleviated. The market sentiment remained cautious, influenced by weak industrial activity and ongoing global uncertainties, yet coal demand held steady in key sectors.
Europe
In Q4 2024, the coal market in Europe experienced a period of stability, marked by fluctuating demand and supply factors. The European market faced subdued demand, particularly from key importing countries like India and the weakening industrial sector. Reduced coal consumption from the power generation sector, amid growing investments in renewable energy and energy efficiency, contributed to this decline. Additionally, Europe continued to face challenges with rising energy prices and high stockpiles, further damping demand. While some countries maintained steady coal imports, others reduced their reliance on coal due to increased focus on cleaner energy alternatives. On the supply side, logistical constraints, such as delays in coal shipments from major exporting countries like South Africa, added pressure to the market, though alternative suppliers worked to fill the gaps. Despite these hurdles, the market showed signs of cautious optimism, with key producers in the region focusing on long-term production increases. Overall, Q4 2024 in Europe was characterized by a balanced but uncertain market environment, influenced by both external and internal factors.
MEA
In Q4 2024, the coal market in the Middle East and Africa (MEA) region, particularly in South Africa, saw a modest quarter-on-quarter increase of 0.5%. The market remained stable, despite several challenges impacting supply and demand. Supply was constrained due to ongoing protests in Mozambique, which disrupted coal shipments through the Port of Maputo, leading to alternative routes being used, including shipments through Durban. This, along with a split in Transnet, caused some logistical disruptions, though efforts to ramp up coal truck shipments helped mitigate the supply challenges. Demand from India remained average, with a slight rise in sponge iron producers’ coal needs, but power generation in the region saw moderate demand due to increased local production and declining coal usage for power generation. While European demand softened, the steel production sector in India faced challenges, further affecting the coal market dynamics. Despite the slower pace of growth, Exxaro Resources’ plans to ramp up production signal optimism for future coal supply. Overall, the market remained cautious with mixed demand and supply trends.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American coal market witnessed a steady increase in prices, driven by a combination of factors. Increased demand from various sectors, including energy and industrial, played a significant role in pushing prices upwards. The limited supply due to production challenges and logistical disruptions further fueled the price surge. Geopolitical tensions and sanctions on key coal-exporting countries also impacted the market, leading to a tightening of supply and an uptick in prices.
In the USA specifically, the coal market experienced the most significant price changes in the region. Despite fluctuations, the overall trend showed a positive trajectory, with prices consistently edging higher. Seasonal factors, such as increased electricity demand during the summer months, contributed to the price hikes. The correlation between energy prices and coal also influenced the market dynamics, with coal emerging as a preferred option due to its economic advantage.
Looking back at the same quarter last year, the price increase was substantial. Comparing the first and second half of Q3 2024, there was a notable 11% price difference, indicating a significant shift in market dynamics. The quarter-ending price of USD 52/MT of Brown Coal in the USA highlighted the overall positive pricing environment that prevailed during this period.
Plant shutdowns during the quarter included disruptions at [insert plant shutdown names here, adding to the supply constraints and further supporting the upward price trend.
APAC
The third quarter of 2024 for coal pricing in the APAC region witnessed a decline in prices , reflecting a challenging market environment. Several factors contributed to this trend, including decreased energy demand, global supply chain disruptions, and lower buying interest from major importers. Plant shutdowns, such as the incident at the Grosvenor coal mine in Queensland, also impacted the supply chain.
Japan experienced the most significant price changes, with prices in Nagoya increasing by 1% from the previous quarter. Overall trends in the region indicated a negative sentiment, with prices consistently decreasing. Seasonal factors, such as reduced energy consumption during the quarter, further influenced the pricing environment.
Compared to the same quarter last year, prices were lower, reflecting the ongoing challenges in the coal market. The quarter-ending price for Black Coal CFR Nagoya in Japan was recorded at USD 153/MT, marking a continued downward trend in coal prices.
Europe
Coal prices experienced volatility due to fluctuating gas prices and seasonal demand. The prices were supported by increased demand from the electricity sector and declining stockpiles at key terminals. The demand for coal remained strong, driven by the need for electricity generation. However, supply was constrained by production issues in key exporting countries like Indonesia and South Africa. The European Union continued to reduce its reliance on Russian coal by increasing imports from other countries such as Australia, Colombia, and the United States. This shift was part of the broader strategy to diversify energy sources and reduce geopolitical risks. Despite the ongoing demand for coal, there were significant efforts to transition towards cleaner energy sources. The EU's commitment to reducing carbon emissions and increasing the share of renewable energy sources continued to impact the coal market.
MEA
In the MEA region during Q3 2024, the coal pricing environment experienced a notable uptrend, driven by a confluence of factors. Increased demand from various regions, particularly from the energy generation sector, played a significant role in boosting market prices. This surge in demand was further fueled by consistent requirements from industries such as steel production. Supply dynamics also contributed to the price escalation, with logistical improvements and effective rail networks bolstering the availability of coal in the market. However, occasional disruptions, such as plant shutdowns, posed temporary challenges to the supply chain. Within South Africa, which witnessed the most substantial price changes, the coal market demonstrated a positive trend overall. Seasonal factors and correlations in price fluctuations emphasized the resilience of the market amidst varying conditions. Comparing the first and second halves of the quarter, a marginal 1% price increase was observed, reflecting the steady upward trajectory. Ultimately, the quarter concluded with the price of Brown Coal FOB Richards Bay in South Africa standing at USD 106/MT, marking a notable ascent from previous levels.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been particularly eventful for the North American coal market, witnessing a pronounced uptick in prices. This period was marked by several critical factors that significantly influenced market dynamics. Heightened demand from Asian markets, particularly for blast furnace steelmaking and metallurgical coke production, alongside increased consumption in Europe, spurred robust export activities. These global shifts, coupled with a notable reduction in domestic coal inventories, played a pivotal role in driving prices upward. Seasonally, the peak electricity demand during the warmer months exacerbated the pressure on coal supplies, further tightening the market.
Focusing on the USA, the coal market experienced substantial price changes, making it the most dynamic segment in North America. The confluence of reduced domestic production and elevated restocking activities by power firms ahead of the summer season intensified the price surge. This quarter exhibited a solid 5% increase in coal prices compared to the previous quarter of 2024, reflecting a strong upward trend. A notable 14% price escalation between the first and second halves of the quarter underscores the accelerating demand and constrained supply conditions.
Despite the generally positive pricing environment, disruptions such as plant shutdowns in key facilities added further complexity to the supply chain, amplifying the overall market volatility. Overall, the second quarter of 2024 for the North American coal market can be characterized as bullish, driven by robust demand, supply constraints, and seasonal consumption patterns.
APAC
During Q2 2024, the coal market in the APAC region exhibited a relatively stable pricing environment, with several significant factors influencing market prices. The quarter saw a balanced interplay of supply and demand dynamics. Increased demand from the downstream steel sector and stable power generation needs contributed to the steady prices, alongside moderate supply constraints due to logistical bottlenecks and adverse weather conditions. The stability in prices can be attributed to consistent market activities and strategic governmental initiatives that promoted efficient inventory management and auction mechanisms for coal blocks. Additionally, the absence of major plant shutdowns minimized market disruptions, maintaining a steady supply chain flow.
Focusing exclusively on Japan, which experienced the most substantial price changes, the overall trend was characterized by a bullish sentiment. The seasonality effect, due to the anticipated summer peak demand, played a crucial role in driving up coal prices. The correlation between increased power generation needs and higher steel production further reinforced the positive price trajectory. The second quarter recorded a significant price change from the previous quarter at 7%, reflecting robust demand and tight supply conditions. The price comparison between the first and second halves of the quarter remained stable, noted at 0%, indicating a consistent demand throughout the period. This pricing environment reflects a stable to positive sentiment, driven by market fundamentals and strategic responses to supply chain and demand fluctuations. The absence of significant disruptions contributed to the smooth functioning of the coal market, ensuring consistent pricing trends throughout Q2 2024.
MEA
In Q2 2024, the coal market in the MEA region experienced stable pricing, influenced by a confluence of market dynamics. Increased demand from India and the Asia-Pacific region served as a significant factor in maintaining steady prices, as robust activity from sponge iron and cement producers exerted upward pressure. Furthermore, the decision by key power plants to extend their operational lifespans until 2030 contributed to sustained demand for coal. Despite the seasonally warmer temperatures, which typically lower energy requirements, the demand remained resilient due to heightened industrial activity and strategic inventory management by downstream sectors.
Focusing on South Africa, the coal market exhibited notable price stability, with the region recording the highest price changes. The quarter witnessed overall stable trends, driven by a blend of moderate global supply and consistent overseas demand. Seasonal fluctuations had a muted impact, offset by proactive measures such as cost-cutting and efficient transportation strategies. The percentage change from the previous quarter was recorded at 7%, reflecting resilient market conditions. A price comparison between the first and second half of the quarter remained constant at 0%, illustrating a balanced pricing environment. Disruptions such as railcar derailments on Transnet’s network briefly hampered coal transportation, but swift utilization of alternative routes ensured minimal impact. The pricing environment for this quarter has been consistently stable, with strategic demand and supply management maintaining equilibrium despite minor logistical disruptions.
Europe
The second quarter of 2024 has seen decline in the prices of Coal in the European market. The prices of coal showed a downward trend. As the dependency on coal for energy production has been declining in view of the continent’s ambitious climate goals and policies to curb the greenhouse emissions, the demand for coal in the European region has been declining. Many European countries are opting out for coal powered plants to cleaner fuel alternatives which is supported by government policies aimed at promoting sustainable energy sources. With decreased demand, imports for coal have also declined leading to the decline in overall coal market in Europe.
