

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.
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Browse the latest market moving news on the global coal industry.
Australia's Queensland coal royalties to halve in FY25
Australia's Queensland coal royalties to halve in FY25
Sydney, 25 June (Argus) — Australia's Queensland state government — which oversees coking coal regions — expects its coal royalty revenue to halve over the 2024-25 fiscal year to 30 June, driving a budget deficit. Royalty obligations could also reduce coal production. Queensland's state government expects to collect A$5.5bn ($3.6bn) in coal royalties over the 2024-25 financial year, down from A$10.5bn in the previous year, it said in its 2025-26 annual budget released on 24 June. The decline is partly driving a A$8.6bn budget deficit this year. State royalty revenues will remain depressed until at least the 2028-29 financial year because of continued coal price weakness, the government said. It will collect A$5.8bn-6.2bn/yr of coal royalties over the next four financial years. But royalty obligations may still be too high for many Queensland producers. Australian coal producer Bowen Coking Coal (BCC) — which runs the 5.5mn t/yr Burton mine complex — reported significant financing challenges on 20 June that it attributed to weak hard coking coal prices and unsustainably high Queensland royalty rates. The company may need to temporarily close its flagship complex if it is unable to raise capital. US–Australian coal miner Coronado is also facing cash availability challenges. It started talks with Queensland's state government over coal royalty relief in January-March, and signed a A$150mn financing deal with state-owned utility Stanwell on 10 June. Hard coking coal prices have been falling since 2022. Argus ' metallurgical coal premium hard low-vol fob Australia price was last assessed at $174.40/t on 24 June, down from a high of $662.65/t on 16 March 2022, weeks after Russia launched its large-scale invasion of Ukraine. By Avinash Govind Queensland royalty revenue A$bn Product 2023-24 2024-25 (e) 2025-26 (f) 2026-27 (f) 2027-28 (f) 2028-29 (f) Coal 10.5 5.5 6.2 6.2 5.8 5.2 Petroleum 1.7 1.7 1.2 1.1 1.1 1.1 Other 0.5 0.7 0.6 0.6 0.5 0.5 Total 12.7 7.9 8.0 7.8 7.5 6.8 e, f: estimated, forecasted Source: Queensland government Argus' metallurgical coal premium hard low-vol fob Australia price ($/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
LNG license fee found ineligible for budget bill
LNG license fee found ineligible for budget bill
Washington, 24 June (Argus) — A proposal to automatically grant US LNG terminals export licenses in exchange for a $1mn fee will not be allowed to be part of a budget bill that Republicans are attempting to enact before 4 July, according to an advisory from the US Senate's parliamentarian. The program would have effectively nullified a part of the Natural Gas Act that subjects new LNG terminals to licensing requirements, and which former president Joe Biden last year used as the basis to "pause" permitting of new LNG projects last year. On Monday, the Senate parliamentarian advised that the licensing program — along with a separate plan to sell 2mn-3mn acres of public land — do not align with the filibuster-proof process that Republicans want to use for the budget bill, according to Democrats. "Democrats will not stand idly by while Republicans attempt to circumvent the rules of reconciliation in order to sell off public lands to fund tax breaks for billionaires," Senate Budget Committee ranking member Jeff Merkley (D-Oregon) said. Republicans are using the process known as budget reconciliation to pass a massive bill that would cut taxes, expand and gas leasing, repeal clean energy tax credits and make other changes with just 51 votes. Under existing rules, the Senate parliamentarian issues advisories on which programs comply with the "Byrd Rule" that excludes provisions that are "merely incidental" to the budget. Democrats said the Senate parliamentarian also ruled against a Republican proposal to exempt offshore oil and gas projects from the National Environmental Policy Act. Another proposal to block the US Interior Department from being able to reduce fees for wind and solar projects on federal lands is also ineligible, Democrats said. The parliamentarian last week ruled against a proposal to repeal federal tailpipe standards for cars and trucks. The parliamentarian is still reviewing a proposal to require new oil leases sales in the National Petroleum Reserve in Alaska, and to require that 90pc of the revenue from new oil and gas leases in the Cook Inlet to go to the state of Alaska after 2035. Last week, the parliamentarian ruled against a part of the bill that would have required the US Postal Service to sell thousands of electric trucks and charging infrastructure it recently acquired. LNG industry officials had strongly supported the $1mn fee-for-licensing proposal, the cost of which they saw as negligible compared with the benefits of automatically obtaining a license. Under existing law, the US Department of Energy will issue a license after reviewing whether doing so would be in the "public interest", and those licenses are regularly challenged in court. Earlier this month, Republicans abandoned a similar program providing guaranteed approval of new gas pipelines in exchange for a fee of up to $10mn. The apparent removal of those programs from the bill could create more pressure on Congress to work on a bipartisan permitting agreement later this year, industry officials have said. Senate majority leader John Thune (R-South Dakota) said today he was "hopeful" senators will finalize the text of the budget bill and bring it up for a vote by the end of this week. Trump today urged congressional leaders to remain in session, with the Senate voting on the bill by the end of this week, in an attempt to get the bill enacted before a self-imposed deadline of 4 July. "NO ONE GOES ON VACATION UNTIL IT'S DONE," Trump wrote in a post on social media this morning. But Republicans have yet to resolve many high-profile fights over the budget bill, including how quickly to phase down or eliminate clean energy tax credits. The Senate's bill would provide a slightly slower phase out of those tax credits, saving about $530bn over a decade, whereas the House bill would save $570bn, according to new estimates from the nonpartisan US Joint Committee on Taxation. Trump has recently railed against the decision by Republicans to slow down the phaseout of the clean energy tax credits, siding with conservatives such as US senator Mike Lee (R-Utah), who has pushed for an immediate repeal based on concerns of "fake phase-outs" that would later be delayed in subsequent legislation. "I HATE ‘GREEN TAX CREDITS' IN THE GREAT, BIG, BEAUTIFUL BILL," Trump wrote. "They are largely a giant SCAM." Republicans from districts that are benefiting from the tax credits, or where new projects have been proposed, have warned that an immediate repeal would threaten billions of dollars in planned investments, limit job growth and result in higher electricity bills. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
India’s thermal coal imports edge higher in May
India’s thermal coal imports edge higher in May
Singapore, 23 June (Argus) — India's thermal coal imports increased on the year in May, reversing an eight-month decline, lifted by pre-monsoon stocking activity and an anticipated seasonal increase in utility coal burn. India imported 18.65mn t of thermal coal in May, up by nearly 12pc from a year earlier and over 19pc higher from 15.65mn t in April, according to data from shipbroker Interocean. Coal arrivals grew by double-digit percentages on the year across key origins, including Indonesia, South Africa and Russia. India's total imports over January-May stood at 72.6mn t, down by 4pc from 75.55mn t in the same period a year earlier, according to Interocean data. The surge in imports last month may also have been partly triggered by falling prices in key origins, including Indonesia. Indonesia's key GAR 4,200 kcal/kg coal prices slumped to a four-year low in May, averaging $46.10/t fob Kalimantan basis Supramaxes. Prices remain under pressure on ample supplies and weak demand from key buyer China, hitting a fresh multi-year low of $39.40/t fob Kalimantan on 20 June. Indian demand for imported coal has broadly been capped this year because of abundant domestic supplies and an easing coal-fired generation. Indian coal producers' stocks stood at nearly 123mn t as of 31 May, up by 29pc from 95mn t a year earlier. Meanwhile, domestic output continues to edge higher. The country's total coal output stood at 168mn t over April-May, the first two months of the April 2025 to March 2026 fiscal year, growing by 3.4pc on the year. India's coal-fired generation, which meets most of its power requirements, was at 108.82TWh in May, down from 119.54TWh a year earlier and 113.48TWh in April, Central Electricity Authority (CEA) data show. The decline was partly the result of higher hydro and nuclear power generation. The country's coal-fired generation has continues to ease on the year so far in June, with output of 67.2TWh over 1-19 June, down from 72.95TWh a year earlier. Combined coal inventories at Indian power plants stood at 60.46mn t as of 31 May, up from 47.9mn t a year earlier, according to CEA. Import mix Imports from Indonesia totalled 10.89mn t in May, up by almost 15pc from a year earlier and higher by over 25pc from April's 8.69mn t, Interocean data show. Indonesia remained the primary supplier of imported coal to India last month, accounting for over 58pc of total thermal coal imports. Imports from South Africa, a source preferred by coal-consuming industries like sponge iron, rose by over 71pc from a year earlier to 4.26mn t in May, and were also up from 3.2mn t in April. Thermal coal imports from the US stood at 1.89mn t, up marginally on the year but higher by over 37pc on the month. This high-calorific value coal is preferred by cement producers as a replacement to petroleum coke when coke prices are not competitive enough. Russia supplied 1.3mn t in May, up by 73pc on the year and higher by 36pc on the month. By Ajay Modi India thermal coal imports in May 2025 t Origin Quantity % ± m-o-m % ± y-o-y Indonesia 10,895,717 25.4 14.9 South Africa 4,263,725 33.1 71.4 US 1,887,696 37.4 0.2 Russia 1,309,999 36.2 72.9 Mozambique 76,671 na -87.3 Others 222,259 -69.7 -78.9 Total 18,656,067 19.2 11.7 Source: Interocean Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
NZ’s Genesis Energy to maintain coal generators to 2035
NZ’s Genesis Energy to maintain coal generators to 2035
Sydney, 23 June (Argus) — Four New Zealand utilities have signed a non-binding agreement to support utility Genesis Energy's coal and gas-fired Rankine generators at its 953MW Huntly power station through to 2035, underpinning New Zealand coal demand for a decade. The company announced the deal on 19 June. It did not reveal the specific support mechanisms in the deal, but likely involves the other utilities making annual payments in exchange for the right to buy electricity from the company's Huntly power station as needed. Genesis will use the support to maintain its Rankine units until 2035 and build a fuel reserve at Huntly. One of the generators was set to retire in 2026, and two others were previously set to shut early in the next decade. Maintenance will be required on the unit set to retire in 2026. Genesis expects to finalise an agreement with the other utilities by the start of 2026, with the aim to have all Rankine units on line by mid-2026 in time for New Zealand's winter period. Genesis' Rankine units at its Huntly power station play a supporting role in New Zealand's power system, firing up when renewable generation from hydroelectric, geothermal and wind sources falls. The company is working on transitioning its Rankine units to biomass generators, but this is dependent on economic viability of black wood pellet prices . Indonesian sub-bituminous coal, which Genesis uses to power Huntly, is currently much cheaper than pellets. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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On Demand Webinars - 06/02/25Global Coal Outlook 2025
Video - 03/12/24APAC Coal Market Wrap: November 2024
In this short video, join Ajay Modi, Associate Editor, Solid Fuels, Argus as he provides an overview about key events that are driving the thermal coal market in Asia. He will focus on China’s import demand trend amid the ongoing winter season, rising supplies from Indonesia, and imports from India.
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