Coal Price Trend

Coal Prices December 2023

The price of coal in the United States fell in the final month of Q4 2023. This is due to lower coal demand from power plants and more competition from renewable energy sources. Unfortunately, the price collapsed to 40 USD/MT in USA.

The price trend for coal in China declined in the fourth quarter of 2023, owing to the accumulation of surplus product in China and India. Furthermore, growing competition from many nations resulted in price cuts. Along with this, lower demand for coal from downstream power plants contributed to the decline. Moreover, the coal market closed at 128 USD/MT during the closing quarter of 2023.

In Europe, coal prices dropped dramatically, hitting 120 USD/MT in the fourth quarter of 2023. The price drop was influenced by sluggish product demand, low energy prices, and ample storage of European Union (EU) gas.

South Africa's coal prices continued to be high due to strong global market sentiment and increased industrial demand. Furthermore, the adoption of laws that constrained the supply of coal resulted in higher prices. At the conclusion of the fourth quarter of 2023, the market price of coal hit an all-time high of 97 USD/MT.

Coal Price Trend, Market Analysis, and News

IMARC's latest publication, “Coal Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” presents a detailed examination of the coal market, providing insights into both global and regional trends that are shaping prices. This report delves into the spot price of coal at major ports and analyzes the composition of prices, including FOB and CIF terms. It also presents a detailed coal price trend analysis by region, covering North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The factors affecting coal pricing, such as the dynamics of supply and demand, geopolitical influences, and sector-specific developments, are thoroughly explored. This comprehensive report helps stakeholders stay informed with the latest market news, regulatory updates, and technological progress, facilitating informed strategic decision-making and forecasting.

Coal Market Analysis

The global coal market size reached 8.8 Billion Tons in 2023. By 2032, IMARC Group expects the market to reach 17.5 Billion Tons, at a projected CAGR of 7.90% during 2023-2032.

• The burgeoning demand for energy, particularly in developing countries, continues to drive the coal market. Coal is a significant source of power generation due to its abundance and relatively low cost compared to other fossil fuels. According to the International Energy Agency (IEA), the demand for electricity grew by 2.2% in 2023 and is expected to rise at a rate of 3.4% annually by 2026. Also, the coal-fired power generation market is expected to reach 2,737.6 GW by 2032, projecting a growth rate of 2.6%.
• The coal demand is further amplified by its utilization in industries such as steel, cement, and chemicals for energy and as a raw material. The annual growth rate of the cement industry is projected to rise to 5.4% during 2024 and 2032, boosting the use of coal in the near future. At the regional level, the market for cement in North America is anticipated to reach 279.8 million tons by 2032, owing to the demand for construction of skyscrapers, retail stores, and other industrial complexes.
• The coal market share is further being reinforced by the development of clean coal technologies, including carbon capture and storage (CCS), that have the potential to mitigate environmental concerns and support the continued use of coal. According to a study conducted by the IEA, carbon dioxide (CO2) emissions are expected to reduce by 32 GtCO2 below a baseline scenario by 2050 with the accelerated deployment of several low-carbon technologies and efficiency measures. CCS accounts for 20% of this reduction, half of which constitutes CCS at coal-fired power plants. According to IMARC Group, the clean coal technology market is anticipated to reach US$ 5.2 billion by 2032, with a growth rate of 2.9% annually.
• In addition, coal production is showing an upward trajectory as a result of rising investment in coal mining and coal-fired power generation infrastructure. For example, China expanded its coal production in 2023, as construction began on 37 gigawatts (GW) of new coal power capacity while 41 GW of new projects were announced, and 8 GW of previously shelved projects were revived. Also, India expects to roughly double its coal production, reaching 1.5 billion tons by 2030.

Coal News

The report covers the latest developments, updates, and trends impacting the price of coal, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, technological innovations, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the coal price trend.

Latest developments in the coal industry:

• In August 2023, Whitehaven Coal announced its plans to invest in thermal and coking coal growth and production till 2044. The company is also expected to double its capital expenditure (capex) in the 2023-24 fiscal year.
• In November 2022, NTPC Ltd was awarded a contract for a 1,320 megawatt (MW) thermal power plant in Talcher, Odisha. Following that, the company also concluded contracts for four additional coal-fired power projects over the next three years. The projects will increase energy generation capacity by 4.8 gigatonnes.
• In June 2020, Coal India Limited (CIL) won two international competitive bidding e-tenders of 3 million tons (MTs) each, to source coal from abroad. The bids are for 5,000 GAR (gross as received) quality of thermal grade coal.

Product Description

Coal is a combustible black or brownish-black sedimentary rock created from rock strata known as coal seams. It consists of carbon and varying amounts of additional elements, such as hydrogen, sulfur, oxygen, and nitrogen. Coal is classified into four varieties depending on carbon concentration, including anthracite, bituminous, sub-bituminous, and lignite, each with specific qualities, such as energy content, carbon percentage, and moisture level. 

Coal is used in power generation, steel manufacture, cement making, liquid fuel, and as a carbon source for industrial purposes. It also finds use in the creation of synthetic natural gas, and in the manufacturing of carbon fiber and silicon metal. Coal has various advantages, including its abundance, dependability as an energy source, and its significance in supporting economic development in coal-rich regions.

Regional Coverage

The report provides a detailed analysis of the market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of FOB and CIF prices, as well as the key factors influencing the coal price trend.

Global Coal Price

The report offers a holistic view of the global coal pricing trends in the form of coal price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price levels but also provides insights into historical price of coal, enabling stakeholders to understand past fluctuations and their underlying causes. The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed coal demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Coal Price

At the end of Q4 2023, Europe witnessed a downward trend in coal prices. This is attributed to various factors, including subdued product demand, rising adoption of renewable energy solutions, lower electricity prices, and the full capacity of gas storage in the EU. The excess supply of coal from the United States and lowered purchase dynamics also contributed to the declining market price.

This analysis can be extended to include detailed coal price information for a comprehensive list of countries.

North America Coal Price

In North America, the coal market witnessed a falling price trend. The declining demand for coal from downstream power generation plants was a major factor for the dip in prices. The increased adoption of renewable energy solutions, like wind and power over coal, also lowered market demand. In addition, the seasonal decrease in demand for coal from the power generation sector further impacted the coal rates.

Specific coal historical data within the United States and Canada can also be provided.

Middle East and Africa Coal Price

The coal market in the Middle East and Africa (MEA) region showed a positive price trend in Q4 of 2023. The disrupted supply chain and limited product availability due to strikes in coal export facilities were major factors that contributed to the price growth. Moreover, the heightened demand for coal from Europe positively impacted the export of coal. 

In addition to region-wise data, information on coal prices for countries can also be provided.

Asia Pacific Coal Price

The coal pricing in the Asia Pacific region experienced a sluggish trend in the last quarter of 2023. This is due to heightened safety inspections in coal production facilities in the region and surplus product supply. Moreover, the rising stock of coal at ports and subdued demand led to a further decline in price rates.

This coal price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Coal Price

The analysis of coal prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of coal pricing, covering global and regional trends, spot prices at key ports, and a breakdown of FOB and CIF prices.
• The study examines factors affecting coal price trend, including input costs, supply-demand shifts, and geopolitical impacts, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The coal price charts ensure our clients remain at the forefront of the industry.