Global thermal coal prices fell to their lowest level since 2020. About this informs Financial Times.
The main reason for this decline was the rapid growth of production in China, which exceeded demand and caused an oversupply in the world market. During 2023-2024, production in China, India and Indonesia significantly exceeded actual fuel demand, especially in China, which remains both the largest producer and consumer of thermal coal.
In 2024, China reached a record level of production, which caused a sharp reduction in imports. In addition, both China and India have accumulated large stocks, which have practically suspended their purchases from the international market.
The drop in prices was most painfully felt by exporting countries, including Indonesia, Australia, South Africa and Colombia. At the same time, European countries continue to gradually abandon coal energy as part of the transition to a “green” economy.
At the same time, the overall demand for coal in the world remains at a historically high level. It hit a new high last year as a number of developing countries still depend heavily on the resource for a stable energy supply.
