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.
EU rules out reopening methane regulation
EU rules out reopening methane regulation
Brussels, 10 April (Argus) — The European Commission will offer "flexibilities", but will not amend or reopen the bloc's methane emissions regulation, although it will issue non-binding recommendations, it said. "We're not planning to reopen or amend the methane regulation. This would bring more uncertainty at this stage," commission energy spokesperson Anna-Kaisa Itkonen said. The regulation clearly states that implementation shall not endanger EU security of supply, she added. "This is obviously extremely important right now," Itkonen added. Commission officials are working on a recommendation to EU member states to ensure a simple system to demonstrate compliance, and a separate recommendation to ensure uniform and co-ordinated implementation of penalties that does not endanger energy security. "Non-binding recommendations are a helpful signal, but on their own they will not resolve the methane regulation's underlying design flaws, which are creating barriers for EU importers," Eurogas secretary general Andreas Guth told Argus . Consistent implementations across all 27 EU member states is not guaranteed and takes time, he added. EU refiners and fossil fuel importers last month warned that without changes to the regulation the EU would risk up to 43pc, or 114bn m³, of the bloc's 2024 gas imports and 87pc of crude oil imports, or 9.8mn b/d, based on 2024 volumes, being non-compliant in 2027–29. EU officials are in talks with refiners and importers, but declined to comment on industry projections that the methane regulation could lead to supply risk in 2027–29. "We fully support reducing methane emissions," IOGP Europe managing director Francois-Regis Mouton told Argus , adding that non-binding recommendations and guidance are not enough for legal certainty. Mouton called for the methane regulation to be paused while the commission proposes changes to simplify the regulation. Industry is expected to urge EU energy ministers to take action next week. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indiana utility NIPSCO locks out 1,600 union workers
Indiana utility NIPSCO locks out 1,600 union workers
New York, 9 April (Argus) — US utility Northern Indiana Public Service Company (NIPSCO) has locked out 1,600 union workers, a move that could affect coal plant operations. NIPSCO locked out the workers on 2 April, after its labor contract with the United Steelworkers expired. The company and union began contract negotiations on 20 January but have yet to reach a new collective bargaining agreement, NIPSCO said on Wednesday. The lockout "will remain in place until the union agrees to the company's last, best and final offer and a new agreement is reached," NIPSCO said. The union says NIPSCO stopped negotiating after submitting its last offer. In addition, "we are not going to accept their last, best, and final offer because it was not in the best interest of our members," said Jon Doust, USW District 7 sub-district director. The affected workers hold a variety of jobs at NIPSCO, including linemen and clerical positions. Some members have positions at the utility's RM Schahfer coal- and natural gas-fired power plant. But the impact of the lockout on power plant operations could be delayed. Electricity demand in general is typically subdued during the so-called spring shoulder season months. This is particularly true for fossil fuel generation. April and May are months when US coal units are typically scheduled for maintenance outages. In addition to Schahfer, NIPSCO operates the Michigan City coal plant in Indiana, which the company is planning to close in 2028, as well as the Sugar Creek natural gas plant and some wind and solar generating facilities in the state. Maintenance at NIPSCO's coal power plants is ongoing but may be slowed by the lockout, Doust said, "or they are hiring even more contractors than they normally would to backfill the fact that we're locked out and not doing our part." The two coal units at the Schahfer plant are not producing any power at the moment, he said. NIPSCO said it has implemented continuity plans to maintain operations during the lockout. According to the utility, trained non-represented employees and contractors, with support from affiliated companies, are performing work in line with existing safety procedures. The utility is continuing to comply with a US Department of Energy (DOE) emergency order to keep Schahfer's coal units - 17 and 18 - available for generation dispatch if needed, NIPSCO said. Before the order the two units, which have a combined capacity of 848MW, had been slated to retire by the end of last year. Schahfer sells power into the Midcontinent Independent System Operator. Neither the grid operator nor DOE immediately responded to requests for comment. The Schahfer plant took 588,606 short tons (533,975 metric tonnes) of coal in all of 2025 and 95,216st in January 2026 from Peabody Energy's Gateway mine in Illinois, US Energy Information Administration data show. In January, the Schahfer plant burned 90,574st of coal. By Elena Vasilyeva Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India coal auction prices rise on seaborne volatility
India coal auction prices rise on seaborne volatility
Singapore, 6 April (Argus) — Premiums at India's domestic coal auctions rose sharply in March with industrial buyers moving to secure supply following a surge in seaborne coal prices and freight rates, led by the US–Iran conflict and pre-summer restocking by power utilities. State controlled Coal India (CIL) — which meets about three-quarters of India's coal needs — recorded an average premium of 45pc in its March electronic auctions over the notified prices applied to long-term contracted sales, it said last week. This compares with an average premium of 35pc in February. Meanwhile, the overall average premium stood at 38pc for the April 2025-March 2026 financial year. The rise in premiums reflects the rising cost of imports, prompting buyers to actively seek domestic coal sold through spot electronic auctions, also known as single window mode agnostic e-auctions. These auctions accounted for 14pc of CIL's sales in the previous financial year. Coal and petroleum coke prices, along with freight rates, have risen sharply following supply-demand imbalances, amplified by geopolitical tensions in the Middle East. Argus assessed Indonesian GAR 4,200 kcal/kg coal at $59.51/t fob Kalimantan on 2 April for Supramaxes, up by about 10pc from $54.31/t on 27 February, just before the tensions escalated. Prices have also risen by 33pc from $44.91/t at the start of the year. Newcastle NAR 5,500 kcal/kg coal rose by 1.9pc to $87.59/t fob on 2 April, compared with late February and is up by 24pc since the beginning of the year. South African NAR 5,500 kcal/kg coal was assessed 7.4pc higher at $96.11/t fob Richards Bay on 2 April compared with that of 27 February, with prices 31pc higher on a year-to-date basis. Indian utilities typically import Indonesian coal that meets technical parameters of most coastal power plants. Delhi has already asked all thermal power utilities to prepare for a harsher summer . Meanwhile, India has directed private-sector utility Tata Power to restart its 4GW imported coal-fired utility in western Gujarat state . Sponge iron producers prefer coal from South Africa with a high fixed carbon content, while cement makers prefer petroleum coke, and switch to coal during price surges. Cfr India 6.5pc coke was assessed 24pc higher since the start of the war at $160/t on 1 April. The prices are also up by 36pc on a year-to-date basis. Currency volatility has added to landed costs. The Indian rupee averaged at 92.90 rupee to a dollar in March, compared with Rs90.76 in February. It has slipped further to Rs93.46 so far in April, implying additional cost in rupee terms. But coal auctions are priced in rupees, shielding buyers from foreign exchange swings. Auctions Among CIL's subsidiaries, Northern Coalfields recorded the highest March auction premium at 80pc, followed by South Eastern Coalfields (SECL) at 70pc and Eastern Coalfields at 48pc. Individual auction results show a 25-171pc premium growth over the notified price. The highest growth in premium was for a G10 or GAR 3,100-3,400 kcal/kg domestic coal from SECL's Amadand mine, with a deal closing at Rs3,682/t free on rail/road (for) basis, up by 171pc above its notified price. The coalfield also achieved a 45pc premium over the notified price, selling a G6 or GAR 4,200-GAR 4,400 kcal/kg coal at Rs4,014/t on for basis — the domestic market equivalent of fob prices. The prices are still sharply lower than international fob and delivered coal prices. Single window auctions are dominated by industrial buyers, but some independent power producers also participate for small spot volumes. Utilities rely primarily on long term CIL contracts or linkage auctions. Sponge iron, cement costs rise The domestic coal blend in sponge iron production has risen to about 80pc from 30-40pc earlier in key industrial hubs, with some non-integrated units switching entirely to domestic coal to protect margins. Rising auction premiums have pushed up production costs, raising sponge iron prices in key centres like Raipur by 5-7pc, according to Anil Nachrani, president of the Chhattisgarh Sponge Iron Manufacturers' Association. Cement producers are also feeling the impact. The cost of NAR 4,000 kcal/kg coal parcel bought in the auction has risen by 11pc to about Rs8,000/t for delivering the cargo to the plant, increasing per unit energy costs from Rs1.60/unit to Rs1.85/unit, a cement company official said. But the prices are still cheaper compared with Rs2.40/unit on the basis of $150/t cfr price of buying NAR 6,900 kcal/kg Northern Appalachian or NAPP coal. If this uncertainty in the seaborne market prolongs, the premium will increase further, raising the cost of production and potentially cement prices, another cement company official said. By Saurabh Chaturvedi and Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
DOE coal-plant orders yield mixed results
DOE coal-plant orders yield mixed results
Cheyenne, 30 March (Argus) — Only half of the eight US coal-fired power plant units that energy secretary Chris Wright ordered to continue operating this winter actually dispatched appreciable amounts of electricity to the grid. In January, four of the eight coal units the Department of Energy (DOE) ordered to stay open under section 202 (c) of the Federal Power Act had net positive generation, according to power plant operating data recently released by the US Energy Information Administration (EIA). Two other units consumed more power than they dispatched, while another two did not dispatch any generation during the month. Citing an energy emergency, Wright pointed to concerns about grid reliability in ordering the eight coal units and another two units that run on natural gas and oil to stay open instead of retiring as planned in 2025. Wright then extended the emergency orders for these units when the directives expired, pointing to the same concerns. But some politicians and environmental and consumer groups have disputed Wright's claims grid operators faced potential emergencies. Data from the EIA show that two units at the first coal plant DOE ordered to stay open last year — Consumers Energy's JH Campbell plant in Michigan — dispatched power every month following the department's initial order on 23 May 2025. Another unit at the plant had net generation in June-October as well as December but consumed more energy than it dispatched in November 2025 and in January 2026. Unit 17 of NiSource's RM Schahfer plant and unit 2 of Centerpoint Energy's FB Culley plant, both of which were initially issued emergency orders in December and had them extended on 23 March, also generated power in January. But Schahfer unit 18, which also is subject to the order, had net -3,705MWh on generation in January. DOE's recent orders keeping retiring plant units open have required the plant units be available for dispatch when needed. But that did not mean that they had to generate power at other times. With the exceptions of storms in late-January and early February, the weather in the US most of this past winter was relatively mild. Constellation Power said it operated Eddystone units 3 and 4, which run on natural gas and oil and have been subject to DOE orders since 30 May 2025, during hot weather at the end of June and end of July and during winter storm conditions and colder than normal weather 26-29 January. Extending operations at the last minute can be complicated by fuel availability and other factors. Of the two coal units under emergency orders that did not dispatch any power in January according to EIA, Tri-State Generation & Transmission's Craig unit 1 ,was taken out of service in mid-December because of a mechanical failure, while TransAlta's Centralia plant was put in "cold-shutdown" in early December. DOE issued emergency orders to both units at the end of December, shortly before they were scheduled to retire. The agency extended the order for the Craig unit on 30 March and the order for Centralia on 16 March. DOE last year also issued an order allowing Talen Energy to run unit 4 of the HA Wagner oil-fired plant in excess of emissions limits if needed for reliability, but that order expired at the end of 2025. Talen expects to operate Wagner units 3 and 4 until 31 May 2029. By Courtney Schlisserman US coal plants with active emergency orders Plant name Jan 26 net generation ( MWh ) Jan 26 consumption ( st ) Jan 25 net generation ( MWh ) Jan 25 consumption ( st ) JH Campbell unit 1 155,951 89,633 187,955 107,469 JH Campbell unit 2 -612 0 193,811 108,375 JH Campbell unit 3 431,520 245,342 578,398 320,758 Centralia 0 0 430,197 302,227 Craig unit 1 0 0 174,089 100,975 RM Schahfer unit 17 172,064 90,574 98,307 54,965 RM Schahfer unit 18 -3,705 0 136,987 70,368 FB Culley unit 2 9,338 6,092 17,922 10,884 — EIA Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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