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.
China to invest in Kazakh coal chemistry projects
China to invest in Kazakh coal chemistry projects
London, 29 July (Argus) — Kazakhstan held discussions with Chinese investors this week over investments in coal chemistry projects, as the central Asian country continues to step up coal sector developments, the energy ministry has said. Ongoing coal chemistry projects in Kazakhstan were discussed at the meeting on Tuesday, which emphasised China's increased co-operation in the initiatives. The potential Chinese involvement adds to a growing roster of foreign investments that Kazakhstan's coal sector has received from countries such as Russia, Germany and the US. Kazakhstan said last month that it aimed to develop six coal-to-chemical projects in 2026-31 to help in the coal-based production of metallurgical coke and synthetic fuels. Separately, the energy ministry said it expects to have a 1.3TWh electricity surplus by the end of 2027 after new generation capacity is commissioned this year. The ministry plans to commission at least 2.42GW this year under a broader national project that aims to add 7.8GW by 2030 , mostly coal-fired power at a cost of around 7.5 trillion tenge ($15.5bn). Kazakhstan relies heavily on coal-fired power — around 62pc of its generation this year has been coal based, alongside 23.4pc from natural gas, 7.5pc from hydroelectric plants and 7pc from renewables, energy ministry data show. By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Strong Indian coal burn fails to support imports
Strong Indian coal burn fails to support imports
Singapore, 28 July (Argus) — India's coal-fired generation is on course for a record July because a weak monsoon has boosted power demand, but this has not significantly supported demand for seaborne coal because the country holds ample domestic supplies. Coal-fired generation reached 92.6TWh over 1-25 July, up by 12pc from 82.81TWh a year earlier, according to Central Electricity Authority (CEA) data, putting July on track to hit all-time high provided subdued seasonal rains continue to keep power demand elevated. The previous July record of 105.84TWh was set in 2024. The uptick in coal-power output in July, supported by a weak monsoon, elevated temperatures and increased cooling-demand, followed a trend in April-June, with peak demand hitting a record 270.82GW on 21 May. But the stronger coal burn has not translated into higher seaborne coal demand. Thermal coal imports have remained well below year-earlier levels, according to Kpler, because utilities have drawn on ample stocks and domestic supplies were supported by mine-head inventories accumulated over the previous fiscal year. India's thermal coal imports are estimated at 11.3mn t so far in July, down from 12.02mn t a year earlier, Kpler data show. Imports fell by 15pc on the year to 74.5mn t in January-June, according to data from shipbroker Interocean. The weak buying interest from the world's second-largest coal importer is adding pressure to a seaborne market already weighed down by weak Chinese demand, leaving suppliers competing for a shrinking pool of buyers and weighing on seaborne coal prices. The Argus -assessed GAR 4,200 kcal/kg coal market has remained under pressure since mid-June, when prices hit a three-year high. The sluggish prices prompted some buyers to seek competitively priced cargoes. There has been an uptick in post-monsoon enquiries, and some Indian traders bought cargoes from Chinese traders at price points they considered lucrative. But other Indian traders are now pencilling in a slower-than-anticipated demand recovery and are offering cargoes to non-India markets, a Singapore-based trader said, pointing to weak interest in seaborne coal especially from utilities — the largest coal consumer in India. An uptick in freight rates due to escalations in the Middle East conflict has also weighed on demand for imported coal. Domestic supply to utilities remained strong despite lower production, reflecting the drawdown largely from inventories at power plants and mine pitheads. Coal production fell by 5.9pc on the year to 232.49mn t in April-June, largely because of lower output from state-controlled Coal India (CIL), which meets nearly 80pc of India's demand. Combined dispatches to the power sector from CIL, Singareni Collieries (SCCL), and captive and commercial producers rose by 4.6pc on the year to 70.92mn t in June , with most producers trimming their stocks. CIL began the fiscal year on 1 April with around 130mn t of pithead stocks and liquidated 28.3mn t in April-June, leaving just over 100mn t at pitheads by the end of the quarter. Combined inventories at power plants stood at 39.22mn t as of 26 July, down by 28pc on the year and equivalent to about 13 days of consumption, according to CEA data. The stocks are down from about 55mn t a year earlier and from 44.11mn t by end of June, indicating steady drawdown to meet utility demand. Inventories at 29 of 190 monitored plants hold critical stock levels compared with 14 a year earlier. Authorities are actively monitoring the stock drawdown, anticipating that the erratic monsoon would lead to higher load on coal-fired power plants to meet bulk of the demand. A government directive to all utilities to raise imports to support higher generation looks unlikely, unless the combined stocks fall be 30mn t, an official at a utility said. The government had earlier this year ordered Tata Power to boost generation at its Mundra 4GW plant, although bulk of the capacity of the plant is underutilised even during the peak summer period, according to a market participant. This points to evolving power mix that has helped to partly meet the peak power demand. Grid-scale generation excluding renewables rose by 6.8pc on the year to 116.04TWh over 1-25 July, according to CEA data. Large hydropower output fell by 18pc to 14.15TWh because below-normal rainfall curtailed reservoir inflows. Renewable generation, which is excluded from the CEA data, is estimated to have reached around 31TWh in the period, up from about 26TWh a year earlier. Solar power output has helped to meet day-time peak power demand, easing some pressure on the coal-powered fleet. But coal remained a swing fuel since solar output fades in the evening. Rating agency ICRA expects power demand growth of around 5pc in 2026-27 financial year ending in March 2027, although the outlook remains exposed to weather conditions, said its vice president Ankit Jain. Weather conditions Cumulative rainfall was about 15pc below normal on 1 June-25 July, while June rainfall was 39pc below the long-period average, according to the India Meteorological Department (IMD). Levels in India's 166 major water reservoirs stood at 38.4pc of capacity as of 23 July — about 36pc below a year earlier — according to Central Water Commission data. But extreme weather is expected in the wider region with the onset of El Nino weather phenomenon. The IMD has warned of extremely heavy rainfall over coal-bearing states in central and east India this week, threatening opencast mining. Erratic rainfall is adding uncertainty to power demand and coal consumption forecasts. It is difficult for traders to assess demand outlook and execute deals in such an environment, an India-based trader said. By Saurabh Chaturvedi Indian power generation mix (TWh) Indian power plant inventories (mn t) Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India's thermal coal imports fall in June
India's thermal coal imports fall in June
Singapore, 23 July (Argus) — India's thermal coal imports fell for a seventh straight month in June compared with a year earlier, as ample domestic coal supply weighed on demand for seaborne cargoes. India imported 12.74mn t of thermal coal in June, down by 12pc on the year, although receipts edged up by 0.7pc from May, according to shipbroker Interocean data. Imports in January-June totalled around 74.5mn t, falling by about 15pc from a year earlier. The power sector accounted for around 20pc of total coal imports in June, with steel mills and trading firms making up the majority. Domestic supplies met the bulk of power sector demand last month. Combined dispatches to the power sector from state-controlled Coal India (CIL), Singareni Collieries (SCCL), and captive and commercial producers rose by 4.6pc on the year to 70.92mn t in June, but fell from 73.56mn t in May, according to provisional data from India's coal ministry. Coal-fired generation rose by 14pc on the year to 117.68TWh in June, while large hydropower generation fell by 20pc to 13.36TWh, Central Electricity Authority data show. Indonesia remained the dominant supplier, accounting for around 52pc of total receipts, followed by South Africa and the US, according to Interocean data. By Saurabh Chaturvedi India's thermal coal imports in June t Country Jun '26 May '26 ± on month (%) Jun '25 ± on year (%) Indonesia 6,582,492 6,918,812 -4.9 8,390,919 -21.6 South Africa 2,249,599 1,926,880 16.7 2,997,119 -24.9 US 1,629,511 1,439,648 13.2 969,321 68.1 Russia 1,080,263 1,601,213 -32.5 1,240,671 -12.9 Mozambique 513,634 33,650 1,426.4 229,540 123.8 Australia 121,432 514,868 -76.4 362,560 -66.5 Others 560,498 212,360 163.9 353,900 58.4 Total 12,737,429 12,647,431 0.7 14,544,030 -12.4 Soruce: Interocean Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Uzbekistan coal prices diverge since liberalisation
Uzbekistan coal prices diverge since liberalisation
London, 21 July (Argus) — Thermal coal prices in Uzbekistan have shown patterns of divergence since the country lifted price restrictions in early June, data from the Uzbek Commodity Exchange (Uzex) show. Prices of coal grades for household consumption appeared to be stable, while grades for power plant usage were mixed, according to Uzex data from late-May to early July. Uzbekistan ended state-set prices and shifted to liberalised market operating under a supply-and-demand-based system through exchange trading for its coal industry from 1 June. Under the new system, thermal power plants and industrial buyers have been allowed to secure coal through a "request for proposals" method or tenders at weighted-average exchange prices. A separate mechanism allowed households and public institutions to secure deliveries, with producers selling to entrepreneurs through a separate dedicated trading platform. Data from the exchange show among grades of coal used by households, prices of D-grade thermal coal sized around 20-60mm hovered near $111.28/t and SS-grade sized thermal coal sized 13mm remained near $38/t levels, with both prices unchanged since 1 June. Utilities that use D-grade thermal coal sized at 0-300mm also saw prices hold steady at $80.50/t, but lignite sized at 0-300mm saw the sharpest 33pc jump to near $40/t during the past month. Uzbekistan's domestic coal supply is primarily fulfilled by two main coal reserves, with the Angren coalfield located in the east and the Shargun deposit located in the south of the country. High ash and low calorific value lignite is mined at the Angren deposit, while higher quality bituminous coal is mined at Shargun. The Uzbek government had previously noted that local power plants use a blend of coal from both coal mining regions as a substitute for imports. Coal production declines Domestic coal production in Uzbekistan fell by 36pc on the year to 1.6mn t over January-May, data from Uzbekistan's statistics bureau show. The data showed Uzbek coal production in the first five months of 2025 had totalled 2.5mn t and around 1.9mnt during the same period in 2024. The country plans to raise its coal output forecast to 11mn t in the coming autumn-winter season, which typically spans September-February, the government said in early June. Uzbekistan had aimed to produce 10mn t during the last heating season. The country also imports coal via rail, with most of it supplied by neighbouring Kyrgyzstan. Imports from Kyrgyzstan jumped 48.4pc on the year to 288,500t over January-March, data from Global Trade Tracker show. By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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