Coal
Overview
Global thermal coal prices surged to record levels in 2022, experiencing unprecedented volatility. Prices have since come off as risks associated with Europe’s supply recede. At a global level, coal demand remains robust with security of supply shifting higher up the agenda of many governments in light of geopolitical upheaval.
In Europe, sanctions have shifted the region’s coal import mix away from Russia and towards other suppliers. The pace of coal plant phase-outs in the region is set to increase in the years ahead, with the role of coal in the electricity mix shifting further towards peak-load usage, making forward planning more challenging.
In Asia-Pacific, thermal coal remains a pillar of the power and industrial sectors. Global coal trade flows and price spreads are shifting, with flows from key suppliers Russia, Indonesia, Australia, South Africa, Colombia, and the US penetrating new markets, in response to price dynamics and trade barriers.
Keeping on top of prices and flows, and how coal markets intersect with other energy and commodity benchmarks, will be critical in the coming years.
Latest coal news
Browse the latest market moving news on the global coal industry.
Indonesia's coal exports extend decline in April
Indonesia's coal exports extend decline in April
Singapore, 10 June (Argus) — Indonesia's coal exports fell on the year for a fourth consecutive month in April, as weaker demand from China and India continued to weigh on shipments. The world's largest coal exporter shipped 37.33mn t of all coal types in April, down by 3.5pc on the year, according to Indonesian customs data compiled by Global Trade Tracker (GTT). Volumes were broadly stable from March's 37.6mn t . Cumulative exports in January–April reached 151.1mn t, down by 6.9pc from a year earlier. Thermal coal accounted for nearly 96pc of total shipments last month. Exports declined in line with a drop in shipments to key markets, China and India — the world's top two coal importing nations. The decline also comes as Indonesian coal output continued to remain under pressure in line with weak demand and lack of clarity over annual production quotas. Seaborne prices added further headwinds, with suppliers raising offer prices citing supply-side issues as well as Asian summer demand. The delivered costs have also risen on the back of higher freight costs linked to the US-Iran conflict, eroding the competitiveness of imported seaborne coal in key markets. Argus assessed the GAR 4,200 kcal/kg coal at $66.30/t fob Kalimantan on 5 June, the highest level since May 2023. The elevated prices are likely to continue weighing on demand from buyers of imported coal. Shipments to China fell to 11.38mn t in April, down by 4.3pc on the year and by 5.7pc from 12.07mn t in March, according to the GTT data. Chinese customs data put thermal coal imports from Indonesia slightly lower at 11.07mn t, marking a sharper 22pc on the year decline in April. Overall Chinese thermal coal imports fell by 23pc on the year to 20.88mn t in April. Exports to India rose on the month to 8.23mn t from 7.81mn t, but were down by 24pc on the year. This was in line with the declining trend seen in India's receipts of seaborne coal. Receipts from Indonesia were at 7.99mn t in April, accounting for about 59pc of India's 13.59mn t of thermal coal imports, according to shipbroker Interocean estimates. Indian imports declined by 13pc on thboe year in April, Interocean data show, extending a downturn as strong domestic output continues to cap Indian demand for seaborne coal. Southeast Asia was the main source of demand growth for Indonesian coal. Exports to the region rose to 11.28mn t in April, up by 6.4pc on the month and 8.4pc on the year, making it the only major region to record growth. Vietnam led gains, with imports rising by 33pc on the year to 3.73mn t on higher coal-fired generation, as coal burn increased in line with power demand and addition of new capacity. Shipments to Thailand and the Philippines also increased — rising by 26pc on the year to 1.3mn t and 4.5pc year-on-year to 3.54mn t, respectively. Exports to Malaysia declined by 14pc on the year to 2.17mn t in April. But shipments to South Korea rose by 69pc from a year earlier to 1.82mn t. The decline in exports is in line with the dip in output. Indonesia produced 230mn-235mn t of coal in the first four months of 2026, according to Argus estimates based on market information. This is down from a revised 250.5mn t a year earlier. The output represents around 38pc of the government's 600mn t full-year target, although the production guidance could be reviewed and revised upwards next month , according to market participants. Indonesian coal producers could have supplied 80mn-85mn t of coal to the domestic market under domestic market obligation (DMO) requirements during the first four months of the year, market participants added. Supply constraints persisted through April. Delays in RKAB mining quota approvals continued to limit export availability, while the DMO — raised to at least 30pc of annual output — further tightened exportable volumes. Some smaller producers have reportedly exhausted quotas and are selling from stockpiles. On the supply side, Indonesia rolled out the first phase of its export centralisation plan through Danantara Sumber Daya Indonesia on 1 June, which might introduce an additional layer of operational uncertainty over seaborne supplies. By Saurabh Chaturvedi Indonesia coal exports (mn t) Indonesia coal exports by destination (mn t) Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indian cement firms return to petroleum coke market
Indian cement firms return to petroleum coke market
Singapore, 10 June (Argus) — The Indian cement industry, a key buyer of seaborne petroleum coke, is switching back from thermal coal to coke for the first time this calendar year because coke has regained its competitiveness following a sharp price decline. The country's cement industry booked about 10-12 Supramaxes of high-sulphur coke, primarily US origin, over the last few weeks, said market participants. This roughly translates into a total booking of 600,000t, showing a significant uptick in appetite. For comparison, cement plants imported 1.03mn t of coke over January-April, less than one-third of the 3.27mn t received in the same period in 2025, data from shipping agency Interocean show. Most producers opted for the more competitive coal during January-April, especially high-CV NAR 6,900 kcal/kg Northern Appalachian (NAPP) coal from the US. India imported 3.65mn t of NAPP coal over January-April, up by 30pc on the year, according to trade analytics platform Kpler. Cement and brick kilns are the key users of this coal. The Argus -assessed cfr India 6.5pc sulphur coke increased for the seventh consecutive week to a 27-month high of $129/t on 25 February on the back of firm fob coke costs, three days before the US-Iran conflict broke. The conflict choked coke supplies from the 460,000 b/d Aramco/TotalEnergies' Satorp refinery in Saudi Arabia's Jubail because vessels can only reach the refinery on the Mideast Gulf coast by traveling through the strait of Hormuz. Coke output at the Saudi Aramco/Sinopec Yasref refinery in Yanbu, Saudi Arabia, was also heard to have been lower than usual in recent months. Jubail and Yanbu each typically ship about 1.8mn t/yr of coke. The supply disruption, together with higher freight rates in the aftermath of conflict and tighter fob coke supply from the US Gulf, raised delivered India coke prices further. Delivered prices of 6.5pc sulphur coke increased for twelve straight weeks since the start of 2026 to hit a three-year high of $160/t on 1 April, rising by 24pc since the US-Iran conflict started. Coke-thermal coal gap narrows Coke stayed at a premium to NAPP coal for most of this calendar year so far, prompting buyers to look for coal. NAPP coal offered a consistent discount through January-May, with the gap between two fuels hitting $15-$20/t in May. But this gap gradually narrowed since the end of May and almost disappeared early this month triggering an uptick in coke purchases. Offers of July-or August-loading coke Supramax cargoes are being made in the low-to mid-$130s/t cfr on India's west coast, while NAPP coal is being shown at $133-$134/t cfr. NAPP coal attracts a lower import duty of 2.75pc against an 11pc duty on coke, which broadly offsets the calorific value (CV) differential between the two fuels. Delivered India prices of 6.5pc sulphur coke were last marked at $135.50/t on 3 June, down by 15pc from their recent peak. Some cement plants that bought NAPP coal earlier to replace coke are selling coal from their port stocks at a profit of $5-$6/t in the retail market and booking coke cargoes as a replacement. Fuel accounts for the largest share of input cost for cement producers at 30pc. A rise in fuel costs typically pressures producers' margins unless they can fully pass on the increase in cement prices. Producers have faced challenges in raising cement prices in recent years due to large capacity additions and a fight for market share. Indian cement manufacturers use coke as fuel in their kilns, together with thermal coal. But cement firms have been buying less seaborne coke so far this year, while raising the share of domestic and imported coal in its fuel mix due to more competitive pricing. India's largest cement producer, Ultratech, cut coke in its fuel mix to 41pc during January-March, down from 54pc in the same quarter of 2025, with the company raising its use of coal, the Bombay Stock Exchange-listed firm said in April. The situation has reversed again. A procurement manager with a cement maker said that the company would choose coke and not coal if the firm needed to buy fuel in today's market because the decline has made coke competitive once again. The rising preference for coke could temporarily pressure NAPP coal, especially because demand from brick kilns is typically limited during the monsoon months of July-September, said a market participant. A trader expects limited downside for the delivered India price of NAPP coal because its production and inland transportation cost has increased due to higher fuel prices, and freight rates have remained elevated. But higher utilisation rates at US refineries and increased coke supply continue to put pressure on fob coke. US Gulf high-sulphur coke assessed by Argus dropped below $80/t fob for the first time since early February to hit $79/t on 3 June. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Australia’s Queensland extends Meandu coal mine life
Australia’s Queensland extends Meandu coal mine life
Sydney, 9 June (Argus) — Australia's Queensland state government will extend the life of the state-owned Meandu thermal coal mine into the 2040s, further rolling back the previous Labor administration's pledge to phase out coal in state-owned utilities by 2035. The approval will extend the life of the 7.6mn t/yr Meandu thermal coal mine by 21 years and unlock up to 200mn t of thermal coal to power the state, the government said today. The mine's lease was due to expire in 2023, and the extension will see it extended to 2044, Argus understands. The previous Labor administration pledged in 2022 to end state-owned utilities' reliance on burning coal by 2035 and operate state-owned coal-fired power plants as clean energy hubs from 2027. Under this plan, all coal-fired power generation capacity in the state was expected to close by the 2037-38 fiscal year. The current Liberal National (LNP) government reversed this policy after it was elected in October 2024 , instead committing to keep some of its state-owned coal-fired power plants operating until the late-2030s and mid-2040s , according to its five-year energy roadmap released in October 2025. Meandu is owned by the Queensland state government through its wholly-owned energy corporation, Stanwell, and supplies Queensland's 1,843MW Tarong coal-fired power stations exclusively. These power stations provide approximately 20pc of the state's energy needs, the government said. Coal currently supplies more than 60pc of Queensland's energy consumption and will continue to play a key role in the state's energy mix for decades, state minister for natural resources and mines Dale Last said on 9 June. The LNP abolished the state's renewable energy targets of 50pc by 2030, 70pc by 2032 and 80pc by 2035 in December 2025 under its Energy Roadmap Amendment Act 2025. By Emma Partis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
South Korea’s fundamental fuel economics and policy
South Korea’s fundamental fuel economics and policy
London, 8 June (Argus) — The dynamic between thermal coal and LNG in South Korea's energy mix is more relevant than ever in the wake of the Mideast Gulf war, with surging prices, supply disruptions and evolving government policy all dictating the shape of South Korea's electricity generation. Generation margin advantage Coal has maintained substantial cost advantages over gas-fired generation since the US/Israel-Iran war began. On 6 March, thermal coal generation costs in South Korea were estimated at 75.83 won/kWh, compared with W216.22/kWh for LNG. Argus' NAR 5,800 kcal/kg thermal coal assessment rose by $19/t to $115.63/t cfr South Korea on 6 March, while northeast Asia (ANEA) front-month spot LNG prices more than doubled over the same period to $23.665/mn Btu from $10.715/mn Btu . April: Full switching to coal In April, South Korea demonstrated substantial fuel switching away from gas to coal. South Korean coal burn averaged 15GW in April, up by 42pc from around 10.6GW in 2025. Gas generation was down by 6.2pc, equivalent to an LNG demand cut of approximately 110,000t. This marked the first full month without any Qatari LNG deliveries following the outbreak of the Middle East war. May-June: Persistent coal support, constrained gas burn Despite ongoing government efforts to preserve LNG stocks, coal's dominance continued. Gas-fired output fell to 15.9GW for the rolling four-week average over 27 April–24 May 2026, down by 4.4pc on the year, while coal-fired output rose by 16.5pc to about 15GW over the same period. However, at least six LNG cargoes were diverted to South Korea in May, signalling spot demand driven by summer temperatures. Structural constraints on fuel switching South Korea's ability to fuel-switch away from gas is constrained by persistent grid bottlenecks. New renewable, nuclear and coal-fired power plants in coastal areas lack sufficient grid capacity to transfer power to urban demand centres. This structural constraint has kept a higher floor for gas-fired output, particularly during off-peak hours. Coal's balancing role During the spring shoulder season (typically March–June), South Korea implements countermeasures forcing generators to run coal-fired units at minimum levels to maintain grid stability. Coal-fired plants require higher minimum stable output than gas-fired units, making them far less flexible when solar output spikes in the middle of the day. As a result, gas-fired plants have been relied on as the main balancing power source during peak renewable generation hours. Policy and energy transition The South Korean government previously pledged to phase out coal entirely by 2040 but shifted to a more flexible stance following Middle East energy disruptions. By 14 April, the government signalled the possibility of delaying its coal exit plan in response to the war in the Middle East, although it simultaneously reaffirmed its commitment to expand renewables to 100GW by 2030. Near-term outlook and summer 2026 demand South Korea is forecast to experience a hotter-than-normal summer in June–August, with its meteorological agency indicating over a 50pc chance of above-average temperatures. This could increase power demand and LNG requirements. But the country faces tighter structural supply dynamics. Nuclear availability is scheduled to fall to 19.4GW in June–August from 20.1GW a year earlier, assuming the Wolsong reactors under maintenance stay off line. Coal-fired capacity will gradually return from maintenance, with 4.7GW set to have returned by the end of May, but this will only partially offset the government's ability to switch away from gas. Gas tariff and electricity price pressures are likely to persist, encouraging continued reliance on coal where operationally feasible. S Korea 40% coal switching price S Korea 44, 40% DS, 58% SS Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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