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.
US LNG sector sees risks from surge in prices
US LNG sector sees risks from surge in prices
Washington, 20 March (Argus) — The spike in LNG prices triggered by the war in Iran is prompting concerns from export project developers about the possibility of future demand destruction if prospective buyers lose confidence in the fuel. Iranian attacks on ships near the strait of Hormuz and missile strikes on Qatar's 77mn t/yr Ras Laffan LNG export terminal have driven prices up sharply. LNG delivered to northwest Europe in May topped $20/mmBtu this week, more than twice the price from before the war. That could mean a windfall for many LNG producers, but industry officials say the return of price volatility makes it harder to pitch governments on the long-term deals needed for such capital-intensive projects. "The volatility in price is probably the biggest risk for industry," said Ben Dell, managing partner at US private equity firm Kimmeridge on Friday at an event held by the US Trade and Development Agency. LNG prices have yet to hit the record highs seen in 2022 after Russia's invasion of Ukraine, but countries are already taking dramatic steps to reduce energy use in response. The IEA on Friday released recommendations to reduce demand-side energy use, including lower vehicle speed limits, working from home and avoiding jet travel. "If we end up more weeks or months in — we are already cutting bone — we will be cutting really deep bone," US LNG developer Excelerate Energy general counsel Alisa Newman Hood said. "We need LNG to be dependable in order for [governments] to depend on it and not end up in demand destruction." The attacks on the Ras Laffan LNG terminal could increase the value of LNG assets outside of the Middle East that "now appear to have lower operating risk, especially if an ultimate ceasefire agreement appears tenuous", investment bank TD Cowen said in a note to clients on Friday. US gas industry officials believe at least three large-scale LNG projects will soon reach FID but say more capacity may be needed. "I really think we ought to start today with more of a wartime mindset," LNG Allies executive director Fred Hutchison said. President Donald Trump's administration has championed the growth of US LNG, including by tapping federal financing and insurance authorities. The US Export-Import Bank (EXIM) last week said the proposed $14bn Delfin floating LNG project off Louisiana was a "potential" transaction it was reviewing.The US credit export agency has already provided loans and insurance to support US exports for LNG projects in Mozambique and Turkey, but it has yet to extend credit or insurance directly to US LNG export terminals. "We're looking at some potential LNG projects, for example, that will be exporting more cargoes and more molecules abroad," EXIM Bank vice president of global business development Ben Todd said at the event. "One area where EXIM Bank has seen absolutely increased demand is supporting the physical cargoes themselves." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US temporarily waives Jones Act shipping: Update
US temporarily waives Jones Act shipping: Update
Updates to include industry opposition to the move and add context. Washington, 18 March (Argus) — President Donald Trump has approved a 60-day waiver of domestic shipping requirements under the Jones Act in an attempt to ease a spike in commodity prices caused by the war in Iran, a move that is unlikely to significantly affect US gasoline prices. The temporary waiver will allow shippers to transport crude, natural gas, natural gas liquids, fertilizer, coal and other energy-related products from one US port to another without using US-built, US-crewed and US-flagged ships, as the 1920 Jones Act requires. The waiver is meant to mitigate "short-term disruptions" to oil markets caused by the war in Iran, according to the White House. Maritime labor unions in the US expressed strong opposition to the waiver when first proposed by the White House last week, saying it would have a limited effect on domestic gasoline prices since high crude prices — and not domestic shipping costs — are the main driver of gasoline prices. "This waiver will not reduce gas prices," industry coalition American Maritime Partnership told Argus today. "The maximum potential impact of domestic shipping on the cost of gasoline nationwide is less than one penny per gallon." The Jones Act waiver could make it easier for traders to transport the up to 172mn bl of crude the administration plans to draw down from the US Strategic Petroleum Reserve (SPR), starting as early as this week. The waiver will allow that crude to be shipped to other US ports without having to be loaded onto the small fleet of Jones Act-compliant tankers that are typically more costly to charter. Trump's intervention into the cabotage requirements comes as domestic prices for fuel and fertilizer have spiked in response to attacks on shipping in the strait of Hormuz. US regular grade gasoline prices were $3.72/USG in the week ended 16 March, up from $2.94/USG before the US started military strikes on Iran. "This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to US ports for 60 days, and the administration remains committed to continuing to strengthen our critical supply chains," the White House said. The Jones Act can be waived at the request of the Secretary of Defense to the extent that they consider such a waiver is in the interest of national defense to address an immediate adverse effect on military operations. US Customs and Border Protection did not immediately respond to a request for comment seeking further details on the waiver. The act has been waived briefly in the past, often following severe hurricane that required flexibility in getting energy supplies to different parts of the country. The waiver will likely have limited effect on US natural gas flows as the winter heating season winds down, especially with shipping and supply disruptions from the US-Israel war on Iran creating much stronger margins for exporters of US LNG. By Chris Knight and Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US temporarily waives Jones Act shipping rules
US temporarily waives Jones Act shipping rules
Washington, 18 March (Argus) — President Donald Trump has approved a 60-day waiver of domestic shipping requirements under the Jones Act of 1920 in an attempt to ease a spike in commodity prices caused by the war in Iran. The temporary waiver will allow shippers to transport crude, natural gas, natural gas liquids, fertilizer, coal and other energy-related products without having to comply with the Jones Act, a law that requires shipments between US ports to take place on vessels that are US-built, US-crewed and US-flagged. The waiver is meant to mitigate "short-term disruptions" to oil markets caused by the war in Iran, according to the White House. "This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to US ports for 60 days, and the administration remains committed to continuing to strengthen our critical supply chains," the White House said. US Customs and Border Protection did not immediately respond to a request for comment seeking further details on the waiver. Trump's intervention into the cabotage requirements comes as domestic prices for fuel and fertilizer have spiked in response to attacks on shipping in the strait of Hormuz. US regular grade gasoline prices were $3.72/USG in the week ended on 16 March, up from $2.94/USG before Trump authorized military strikes on Iran. The Jones Act waiver could make it easier for traders to transport the up to 172mn bl of crude the administration plans to draw down from the US Strategic Petroleum Reserve (SPR), starting as early as this week. The waiver will allow that crude to be shipped to other US ports without having to be loaded on a small fleet of Jones Act compliant tankers that are typically more costly to charter. The US Department of Energy finished accepting bids on Tuesday night on an initial solicitation that offered to release half of the crude. The waiver will likely have limited effect on US natural gas flows as the winter heating season winds down, especially with shipping and supply disruptions from the US-Israel war on Iran creating much stronger margins for exporters of US LNG. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indian cement makers brace for fuel price shocks
Indian cement makers brace for fuel price shocks
Singapore, 18 March (Argus) — Indian cement makers are back to their drawing boards to review fuel procurement strategy for new fiscal year starting 1 April after a surge in seaborne petroleum coke and coal prices brought on by the US-Iran war. India — the world's second largest cement market — is a key importer of high-sulphur coke from origins including the US and Saudi Arabia. Procurement teams usually finalise annual plans for the new fiscal in February, but executives are revisiting their estimates after the war created upheaval in supply chain and triggered rally in coke and coal prices. At around 30pc, fuel is the single largest input cost for cement producers. A jump 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. Prices of coke, a key fuel used in cement making were largely stable in 2024 and 2025. The Argus -assessed delivered India price of 6.5pc coke averaged at around $107.91/t in 2024 and was marginally up at around $111.62/t in 2025. But the average year to date this year is much higher at $124.65/t, while the last assessment was at $145/t on 11 March. April-loading Supramax offers of this high-sulphur coke are being made at $155-160/t to India's west coast. The unexpected surge is making procurement teams review their budget plans for the April 2026-March 2027 fiscal. Procurement executives at leading cement makers said they had planned their fuel spend for next fiscal at an average price of $120-125/t basis on calorific value (CV) of 7,500 kcal/kg, which is the typical CV in coke. But most buyers now realise that the actual number for next fiscal could be significantly higher. "We have tweaked our fuel planning since the war started. We increased our term position of US Northern Appalachian (NAPP) NAR 6,900 kcal/kg coal, raised lifting of domestic coal and trying to postpone booking of coke as much as possible," a cement procurement executive said. The budget exercise undertaken in February is being reworked, said an executive at another cement maker, adding that the share of domestic coal was not significant in the initial plan, but they now aim to use at least 25pc domestic coal in fuel mix, reducing coke burn. "Cement plants located closer to west coast of India are transporting coal from coal hubs in eastern states because there is enough incentive to do so," he said. Cement makers received 1.36mn t of domestic coal in February, up by about 85pc from a year earlier, coal ministry data show. Receipts rose by 43pc from 950,000t in January. Domestic coal prices are regulated and insulated from fluctuations in the seaborne market, allowing cement plants to replace imports. An extended weakening of the Indian rupee against the US dollar has also raised overall import costs, pushing plants to ramp up local sourcing. Indian cement makers imported 382,300t of coke in January, down by 55pc from a year earlier and by 51pc from December, according to shipbroker Interocean. Producers still need to blend coke in certain ratios to use local coal effectively. The removal of a 400 rupees/t ($4.33/t) levy on coal from September 2025 also encouraged producers to raise coal use, but this shift can become more pronounced after the war. Plants can switch between coal and coke depending on cost. "Fuel is a variable cost for cement, and our cost forecast is based on an estimated fuel price. If the variation is abnormal and on the higher side, it will be passed on in cement prices. We evaluated scope to increase domestic coal further after the war," said the fuel procurement head at a cement maker. Cement makers would look at ways to manage input costs, but the success will be limited and ultimately they must raise cement prices. Plants are not as panicked as they were after the Russian-Ukraine war that pushed delivered India coke prices to a record $270/t in early 2022 primarily because domestic coal is abundantly available, said a fuel trader. Supply side challenges in seaborne fuel High fuel price is not just the only problem for cement producers. Coke supply from middle east countries, the second largest source after the US, has been affected due to the war. Coke supplies and loading from the 460,000 b/d Aramco/TotalEnergies' Satorp refinery in Saudi Arabia's Jubail have stopped because vessels can only reach the refinery on the Mideast Gulf coast by traveling through the strait of Hormuz. Many vessel owners are afraid to transit though the strait because Iran has been attacking the vessels. Meanwhile, the Saudi Aramco/Sinopec Yasref refinery in Yanbu, Saudi Arabia continues to load but ship tracking data suggest some operators are concerned about a potential escalation in the Red Sea and are diverting away. Jubail and Yanbu each typically ship about 1.8mn t/yr of coke. At least one Indian cement producer and a non-cement buyer have term coke supply with Saudi Arabian refiners, while several cement makers buy spot Saudi coke. Meanwhile, supplies of NAPP coal, a preferred alternative to coke because of its high-CV, are limited. NAPP offers are scarce and indicated at about $150/t cfr on India's west coast, with at least two key producers lacking volumes to load until May, according to a Dubai-based coal trader. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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