💥 The coal market, in crisis since 2024, shows signs of recovery as global prices hit multi-year highs. This surge is boosting Russian exports and production, slightly improving the industry's financial health. The main reasons for the market shift are supply instability caused by accidents and Midd
Macro & Markets ·
Coal markets that have been in decline since 2024 are showing early recovery signs as global prices reach multi-year highs, with Russian export volumes and production climbing and reducing industry-wide losses. Coking coal grades have surged notably—metallurgical coal prices on Far Eastern FOB terms hit their highest levels since early 2024, while PCI (pulverized coal injection) fuel climbed above $190 per ton and thermal coal rose to $86–110 per ton depending on calorific value. The recovery is being driven by supply constraints stemming from mining accidents in major producing regions and Middle Eastern conflict, which have tightened available inventory.
However, the price recovery may be temporary. Market participants and analysts expect elevated prices to persist only through the end of the current year, with the surge concentrated in metallurgical coal segments rather than broader demand improvement. A price index director noted that while metallurgical coal prices have risen sharply due to supply deficits, steel production in major consumer markets continues declining, which limits the underlying demand for coal despite current price gains.
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