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.
Japan's chemicals sector likely to reduce coal demand
Japan's chemicals sector likely to reduce coal demand
Singapore, 15 April (Argus) — A slowdown in petrochemical production in Japan is likely to cut the sector's demand for thermal coal imports. Naphtha-fed crackers in the country have mostly avoided any halt in production caused by supply disruptions, but a few firms have reduced output. Some of the firms that have reduced production include Mitsui Chemicals and Idemitsu. Japan relies on the Middle East for naphtha imports, but supply has been disrupted by the US/Israel-Iran war. But the country is ready to meet domestic requirements for petrochemical products derived from naphtha for at least six months, Japan's ministry for economy, trade and industry (Meti) said. Firms running naphtha-fed crackers are expected to reduce their procurement of thermal coal because of the slowdown and the tight supply of feedstocks, a Japanese trader that supplies thermal coal to chemical firms in the country said. Petrochemical firms usually import bituminous NAR 6,000 kcal/kg coal from Australia for their captive power plants. Thermal coal imports by Japan's petrochemicals sector are estimated to be around 4.5mn t/yr, according to market sources. This is a small percentage, around 3pc, of the country's overall coal imports of 140mn-160mn t/yr, according to customs data from Japan's ministry of finance. A potential cut in coal imports by the sector due to run cuts could be expanded by the shift away from coal by petrochemical companies to using alternative fuels for operations to reduce CO2 emissions. Japanese petrochemical firm Tosoh will start its captive 74MW biomass-fired power plant by end of April the company told Argus on 10 April. The plant is expected to co-fire 50pc of biomass with coal before transitioning to 100pc biomass in 2030. The captive power plant is designed to utilise a combined 360,000-410,000 t/yr of imported wood pellets, construction waste, paper and plastic waste, and coal, according to Tosoh. Tosoh also reduced its coal consumption by shutting down its aging 62MW thermal coal captive power plant, which began operations in 1963. The petrochemical company halted its cracker in central Japan on 4 March for regular maintenance, which was scheduled before the US-Iran war. The cracker was originally planned to restart around 20 April. Tosoh has ensured that it will resume its cracker's operations around the end of April , said the company on 8 April. Power sector demand in Japan But Japanese demand for thermal coal from the power sector is likely to increase in the near term on the back of Meti's temporary removal of restrictions on the operations of inefficient coal-fired power plants in the 2026-27 fiscal year. The removal of restrictions has already led to some enquiries from Japanese utilities. Thermal coal demand from Japan over the past week was focused on increasing annual term supplies. A Japanese utility sought about 2.8mn t of imported thermal coal for a year through a term contract, which likely remains under negotiation. It is seeking another 500,000t of coal in addition to the annual supplies under discussion. Another Japanese utility sought up to two June-July-loading Panamax cargoes of high-CV coal for one of its older, less efficient power plants, a market source said. The utility may have awarded Indonesian high-CV coal for this tender, but details and prices could not be confirmed. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Vietnam leans on coal-power as US-Iran war escalates
Vietnam leans on coal-power as US-Iran war escalates
Singapore, 13 April (Argus) — Vietnam's reliance on coal-fired generation increased in March on stronger electricity demand, with coal output dwarfing other power sources while the Middle East conflict intensified energy security concerns. The southeast Asian nation's coal-fired output was at 16.09TWh last month, up by 44pc from February — marking its sharpest month-on-month increase in two years and underscoring a push to secure stable power supplies since the outbreak of the war in late February. Coal-fired output was also up by 1pc on the year in March, and accounted for 56pc of total generation, the highest since mid-2025, according to data from state-owned utility EVN. The month-on-month jump was amplified by the nine-day lunar new year holiday in February. Vietnam's heavier reliance on coal-fired generation is in line with earlier directive to government departments and utilities to bolster coal stocks and prepare for a harsher dry season ahead . The country has been active in the seaborne coal market lately, even though the US/Israel–Iran conflict has pushed up delivered costs across the wider energy basket, boosting seaborne coal prices and making alternatives such as imported LNG expensive. With gas-fired capacity limited, coal-based power continues to anchor Vietnam's electricity system as the country's economic growth trajectory also supports power demand. Vietnam likely imported 4.1mn t of thermal coal in March, up from 2.8mn t in February, but down from 5.2mn t a year earlier, data from analytics firm Kpler show. Output from gas-fired utilities totalled 2.1 TWh, up 7pc on the year, the data show. Gas- and gasoil-fuelled turbines together accounted for about 7pc of total electricity generation. This represents only a small share of installed capacity, underscoring its limited role in meeting demand growth. Hydropower output rose to 4.96TWh in March, up 11pc on the year and also higher than February's 4.08TWh, the data show. Wind power output edged down on the month in line with typical seasonal patterns, while electricity imports increased modestly but continued to account for a limited share of total supply. Quarterly mix Coal-power output was little changed on the year at 40.64TWh in the January-March quarter, with the 14-22 February holiday weighing on coal burn and industrial and residential power demand. Coal-fired generation during the quarter was up from 30.22TWh in the fourth quarter last year, the data show. The increase in coal-fired generation was reflected in the country's recent demand for seaborne coal. It likely imported 10.29mn t of thermal coal in the first quarter, up from 8.31mn t in October-December 2025, according to Kpler estimates. The country's hydro-fired generation rose to 14.92TWh in the first quarter, up from 13.76TWh from a year earlier, the data show. By Saurabh Chaturvedi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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.
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