U.S. Thermal Coal Markets Bolstered by Rising Global Demand in 2025

Global and domestic coal consumption could support U.S. thermal coal markets in 2025, driven by increased demand in Asia and Europe, despite challenges linked to the energy transition.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Global demand for thermal coal, particularly in Asia and Europe, is expected to support U.S. coal exports in 2025. This comes as the U.S. electric power sector marginally increases its coal consumption, temporarily slowing coal plant retirements.

During a recent conference, Peabody, a leading coal producer, highlighted that coal demand growth is concentrated in Asia. Imports in India and China have risen by 12% and 8%, respectively, compared to the previous year. The International Energy Agency (IEA) also revised its 2030 global coal consumption forecast upward, reflecting the ongoing resilience of this energy source amid the transition to cleaner energy.

Growth in U.S. Exports Projected

Analysts at S&P Global Commodity Insights project that U.S. thermal coal exports will reach 55 million short tons (st) in 2025. Additionally, the top five destinations for U.S. seaborne thermal coal exports from January to October 2024 include India (10.4 million metric tons), Morocco (4.3 million metric tons), and Egypt (3.4 million metric tons). This demand remains strong despite a decline in U.S. FOB coal prices on the West Coast, which averaged $96.85/ton in November.

European Uptick Influenced by Winter Conditions

In Europe, demand for thermal coal is increasing due to low inventories and uncertainties about natural gas supplies. CONSOL Energy recently shipped over 400,000 tons to Europe, reflecting a renewed interest in coal as winter approaches. European delivered coal prices (CIF ARA) hit a seven-month high of $125.30/ton.

Domestic Support for Thermal Coal

In the U.S., several factors are bolstering domestic coal consumption. The U.S. Energy Information Administration (EIA) predicts a 0.4% increase in U.S. electric power sector coal consumption in 2025, reaching 371.7 million st. Data center growth and electric vehicle (EV) adoption are driving energy demand, delaying some coal plant closures until as late as 2038.

Furthermore, a projected increase in natural gas prices, expected to reach $4.26/MMBtu in 2025, should enhance coal’s competitiveness in the national energy mix. However, domestic coal prices have remained relatively stable, with Central Appalachian coal at approximately $73.50/ton.

Prolonged Energy Transition

Although the shift to more sustainable energy sources remains a priority for producers and policymakers, recent data indicate that coal will continue to play a crucial role in providing reliable and affordable energy. Delays in coal plant closures and uncertainties around alternative energy sources highlight the complexity of this transition.

Meanwhile, U.S. coal exports may also benefit from rising demand in North Africa, with Morocco surpassing 2023 import levels. Shipments to Morocco totaled 4.3 million metric tons by October 2024.

Coal will temporarily become the main source of electricity in the Midwest markets MISO and SPP during winter, according to the latest federal forecasts.
The Trump administration plans to open millions of federal hectares to coal and ease environmental rules governing this strategic industry.
The integration of private operators into South Africa’s rail network marks a turning point for coal exporters, with a target of 55 million tonnes exported in 2025 from the Richards Bay terminal.
Facing Western restrictions, Russia plans to increase coal deliveries to China, India and Turkey, according to a recent presentation on the sector’s outlook.
The visit of the Pakistani president to Shanghai Electric marks a new strategic phase in China-Pakistan energy cooperation, centred on the Thar mining and power project and local skills development.
Port congestion in Australia has boosted Russian and Indonesian coal exports to South Korea, with both now dominating the market due to lower prices and reliable delivery schedules.
Polish state-owned producer JSW confirms its 13.4 million tonnes production target for 2025 thanks to new equipment coming online, despite recent disruptions at multiple sites.
Russia and Indonesia overtook Australia as South Korea's top thermal coal suppliers in August, driven by lower prices and more reliable logistics amid persistent Australian shipment delays.
Uniper has demolished cooling tower F at its Scholven power plant, marking a new stage in the dismantling of the Gelsenkirchen coal site, where the energy company plans to build a hydrogen-ready gas-fired plant.
Underreported methane emissions from Australian mines could increase steelmakers’ carbon footprint by up to 15%, according to new analysis highlighting major gaps in global supply chains.
The new Russian railway line linking the Elga mine to the Sea of Okhotsk port will reach full capacity in 2026, after an operational testing phase scheduled for 2025.
The Romanian government is asking the European Union for a five-year delay on the closure of 2.6 gigawatts of coal capacity, citing delays in bringing gas and solar alternatives online.
President Gustavo Petro bans all coal exports to Israel, a decision with minor energy effects but strong diplomatic weight, illustrating his anti-Americanism and attempts to reshape Colombia’s domestic politics.
India’s coking coal imports are rising and increasingly split between the United States and Russia, while Australian producers redirect volumes to China; 2025 results confirm a shift in trade flows.
China approved 25 GW in H1 2025 and commissioned 21 GW; the annual total could exceed 80 GW. Proposals reached 75 GW and coal’s share fell to 51% in June, amid declining imports.
Valor Mining Credit Partners completes its first major financing with a secured loan to strengthen the operational capacity of a U.S. mining site.
Amid tensions on the Midwest power grid, Washington orders the continued operation of the J.H. Campbell plant to secure electricity supply over the coming months.
Peabody Energy abandons the acquisition of Anglo American’s Australian coal assets, triggering an arbitration process following the failure of a post-incident agreement at the Moranbah North mine.
Core Natural Resources announces USD220.2mn in operating cash flow for the second quarter of 2025, while revising its capital return strategy and increasing post-merger synergies.
A report by Wood Mackenzie reveals that geopolitical pressures and rising global electricity demand could keep coal-fired generation elevated well beyond current forecasts.