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 issues 45Z tax guidance for low-carbon fuels
US issues 45Z tax guidance for low-carbon fuels
Washington, 10 January (Argus) — US producers of low-carbon fuels can start claiming the "45Z" tax credit providing up to $1/USG for road use and $1.75/USG for aviation, following the US Treasury Department's release today of proposed guidance for the credit. The guidance includes proposed regulations and other tools to determine the eligibility of fuels for the 45Z tax credit, which was created by the Inflation Reduction Act to replace a suite of incentives for biofuels that expired at the end of last year. Biofuel producers have been clamoring for guidance from the US Treasury Department so they can start claiming the tax credit, which is available for fuels produced from 1 January 2025 through the end of 2027. "This guidance will help put America on the cutting-edge of future innovation in aviation and renewable fuel while also lowering transportation costs for consumers," US deputy treasury secretary Wally Adeymo said. "Decarbonizing transportation and lowering costs is a win-win for America." The creation of the 45Z tax credit has already prompted a change in US biofuels markets by shifting federal subsidies from blenders to producers. Because the value of tax credit increases for fuels with the lowest lifecycle greenhouse gas (GHG) emissions, it could encourage refiners to source more waste feedstocks such as used cooking oil, rather than conventional crop-based feedstocks. While the guidance is still just a proposal, taxpayers are able to "immediately" use the guidance to claim the 45Z tax credit, until Treasury issues additional guidance, an administration official said. The guidance on 45Z released today affirms that only the producer for the fuel is eligible to claim the credit, not blenders. To be eligible for the tax credit, the fuel must have a "practical or commercial fitness for use in a highway vehicle or aircraft" by itself or when blended into a mixture, Treasury said. Marine diesel and methanol suitable for highway or aircraft use are also eligible for 45Z, as is renewable natural gas that can be used as a transportation fuel. Treasury also released an "annual emissions rate table" offering providers a methodology for determining the lifecycle GHG of fuel. Treasury said a key emissions model from the US Department of Energy, called 45ZCF-GREET, used to calculate the value of the 45Z tax credit is anticipated to be released today, although industry officials said it may be delayed until next week. Treasury said it intends to propose regulations at "a future date" for calculating the GHG emissions benefits of "climate smart agriculture" practices for "cultivating domestic corn, soybeans, and sorghum as feedstocks" for fuel. Those regulations could lower the calculated lifecycle emissions of fuel from those crop-based feedstocks and increase the relative 45Z tax credit. US biofuel producers said they are still awaiting key details on the 45Z tax credit, including the update to the GREET model. Among the outstanding questions is if the guidance released today provides "enough certainty to negotiate feedstock and fuel offtake agreements going forward", said the Clean Fuels America Alliance, an industry group that represents the biodiesel, renewable diesel and sustainable aviation fuel industries. It is unclear how president-elect Donald Trump intends to approach this proposed approach for the 45Z credit, which will be subject to a 90-day public comment period. Trump has promised to "rescind all unspent funds" from the Inflation Reduction Act. But outright repealing 45Z would leave biofuels producers and farmers without a subsidy they say is needed to sustain growth, after the expiration last year of a $1/USG blender tax credit and a tax credit of up to $1.75/USG for sustainable aviation fuel. Biofuel and soybean groups were unsuccessful in a push last year to extend the expiring biofuel tax credits. The 45Z credit is likely to be debated in Congress this year, as Republicans consider repealing parts of the Inflation Reduction Act. House Republicans have already asked for input on revisions to the 45Z credit, signaling they could modify the incentive. In a tightly divided Congress, farm-state lawmakers may hold enough leverage to ensure some type of biofuel incentive — and potentially one friendlier to agricultural producers than 45Z — survives. By Chris Knight and Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US added 256,000 jobs in December
US added 256,000 jobs in December
Houston, 10 January (Argus) — The US added 256,000 nonfarm jobs in December, reflecting a robust labor market that may prompt the Federal Reserve to keep borrowing costs higher for longer. Analysts had expected gains of about 160,000 jobs for December. The gains last month followed 212,000 more jobs in November, which were downwardly revised by 15,000, the Labor Department said Friday. Job gains in October were revised up by 7,000 to 43,000 jobs. The CME's FedWatch tool today showed 97.3pc probability Fed policy makers will keep the target lending rate unchanged at 4.25-4.5pc at the next Fed meeting at the end of the month, up from 93.6pc on Thursday. FedWatch shows nearly 60pc probability of no change through the May meeting, up from about 45pc Thursday. Unemployment edged down to 4.1pc in December from 4.2pc the prior month. Payroll employment gains averaged 186,000/month in 2024, for total gains of 2.2mn jobs. That was down from 251,000 jobs/month in 2023, for total gains of 3mn jobs that year. Health care added 46,000 jobs in December, retail trade added 43,000 jobs, government jobs rose by 33,000, social assistance increased by 23,000, and leisure and hospitality added 43,000 jobs. Construction added 8,000 jobs in December. Manufacturing lost 13,000 jobs and mining and logging lost 3,000 jobs. Transportation and warehousing jobs grew by 9,600. Average hourly earnings grew by an annual 3.9pc following 4pc growth in November. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US banks withdraw from global climate alliance
US banks withdraw from global climate alliance
Washington, 9 January (Argus) — The six largest US banks have withdrawn from an industry-led group that works to align financing with a goal of reaching net-zero greenhouse gas emissions by 2050. With president-elect Donald Trump poised to return to the White House, JPMorgan Chase this week joined Bank of America, Citibank, Wells Fargo, Goldman Sachs and Morgan Stanley in pulling out of the Net Zero Banking Alliance (NZBA). All of the departures have occurred since climate skeptic Trump won re-election in November. JPMorgan did not give a reason for leaving the group it had joined in 2021 but said it was focused on "pragmatic solutions to help further low-carbon technologies while advancing energy security". The NZBA declined to comment on the departures. The bank-led NZBA launched in 2021, with a goal to align with industry's lending and investments with the goals of the Paris climate accord. Trump has promised to again pull the US out of the Paris agreement. The 144 banks that were members of the group as of last October were committed to align their portfolios with pathways to reach net-zero by 2050 or sooner. But critics said the industry group, which was convened by the UN, was effectively coordinating a boycott of investment with the oil and gas industry. Texas attorney general Ken Paxton in 2023 began reviewing JPMorgan and other US banks to see if their membership in the NZBA ran afoul of a state law that barred state entities from entering into contracts with banks that boycott the oil and gas sector. Paxton said the departure of banks from the group was a "major step in the right direction." Paxton's office said it had closed reviews of Wells Fargo, Bank of America, JP Morgan and Morgan Stanley. Trump has called climate change a hoax and recently said he wanted to impose a "policy where no windmills are being built". In response to the deadly wildfires across Los Angeles, Trump today blamed the crisis on California leaders and falsely claimed the US Federal Energy Management Agency has "no money — all wasted on the Green New Scam". By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Consol, Arch shareholders approve merger
Consol, Arch shareholders approve merger
Houston, 9 January (Argus) — US coal producers Consol Energy and Arch Resources' shareholders today approved the companies' plan to merge. With the shareholder approval taken care of, the coal mining companies expect to their merger to close on 14 January, becoming Core Natural Resources. Consol will own 55pc of the combined company and Arch will have the remaining stake. Consol and Arch have projected Core Natural Resources to have 12mn short tons/yr (10.9mn metric tonnes/yr) of metallurgical coal capacity and 25mn st/yr of high-calorific thermal coal capacity. The merged entity also will house Arch's Powder River basin (PRB) mines, which produced a combined 34.7mn st in the first nine months of 2024 and 62.8mn st in all of 2023, according to the US Mine Safety and Health Administration. Arch and Consol have not specified what they will do with the PRB assets. Arch chief executive officer Paul Lang said in November 2024 that plans for the company's PRB operations are a "tougher discussion", than for plans for its other assets. Arch executives in recent years have talked about shifting away from thermal coal sales, particularly for the PRB. The new entity will have access to two east coast shipping terminals — the Consol Marine Terminal in Baltimore, Maryland and the Dominion Terminal Associates facility, which Arch co-owns with Alpha Metallurgical Resources. Core Natural Resources also will be able to ship to US west coast and the Gulf of Mexico ports. The companies won shareholder approval despite recent stockholder concerns that prompted legal challenges following the announcement of the proposal in August 2024. Three lawsuits were filed against Consol and Arch, and the companies also received demand letters from counsel representing individual stockholders, Consol said in a recent US Securities and Exchange Commission (SEC) filing. The challenges alleged that the joint proxy statement issued by the coal producers contained "false and misleading" statements and omissions. Consol and Arch stated that these allegations were without merit, but on 3 January the companies submitted an 8-K filing with the SEC voluntarily amending the proxy statement "without admitting any liability or wrongdoing" to prevent any delays or adverse impacts to the merger's progress. By Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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