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.
US quits S Africa energy transition partnership: Update
US quits S Africa energy transition partnership: Update
Updates throughout, details on funding Cape Town, 6 March (Argus) — The US has withdrawn from the Just Energy Transition Partnership (JETP) with South Africa under which it pledged $1.56 billion for the country's decarbonisation. The US' pledges to South Africa's JET investment plan comprised $56mn in grant funds and $1bn in potential commercial investments by the US International Development Finance Corporation (DFC). No concessional loans were offered by the US to South Africa. The move follows US president Donald Trump's executive order in January to pull out of the landmark Paris climate agreement and other global climate pacts. The South African government was notified of the decision by the US Embassy on 28 February. The US' withdrawal from the JETP reduces the current overall international JET pledges to South Africa to $12.8bn from $13.8bn, said the JET project management unit (PMU) located in the presidency. These pledges represented a fraction of the 1.5 trillion rand ($84bn) that South Africa in its 2022 investment plan said it needed over a five-year period to implement a just energy transition. "South Africa remains steadfast in its commitment to achieving a just and equitable energy transition," said JET PMU head, Joanne Yawitch. All other JETP partners remain firmly committed to supporting South Africa's transition, she said. Germany, France, the UK, the Netherlands and Denmark, have confirmed they were still part of the partnership and will continue to provide support. But South Africa's international relations and cooperation department noted that "grant projects that were previously funded and in planning or implementation phases have been cancelled." Meanwhile, the JET PMU said it was "actively engaging with other grant-making organisations to source alternative funding for JET projects previously designated for support from the US grant funding." The UK, France, Germany, the US and EU in 2021 pledged $8.5bn under the JETP to support South Africa's transition to a low-carbon economy and, specifically, to accelerate its phase-out of coal-fired power. Denmark, the Netherlands and Spain subsequently joined the partnership. The US has withdrawn from the International Partners Group, an international alliance that includes UK, the EU, Canada, Denmark, France, Germany, Italy, Japan and Norway. This decision will affect other countries such as Indonesia and Vietnam, which had previously agreed their own JETP with IPG partners including the US. Indonesia climate envoy Hashim Djojohadikusumo earlier this year criticised the JETP process, saying it had "failed" and alleging that "not a single dollar has been disbursed by the US government". At present, South Africa lacks investible non-coal energy projects, risking fund disbursal from partner countries. South Africa's grid remains heavily reliant on coal-fired power and so far the country has not developed any substantial non-coal generation capacity, while at the same time it has extended the life of coal-fired plants that were previously due to be retired. Eskom's decision to delay the decommissioning of the Camden, Grootvlei and Hendrina coal-fired power plants from 2027 to 2030 required the investment plan for an accelerated coal phase-out to be updated. By Ashima Sharma and Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mexican peso dips, recovers on tariff hopes
Mexican peso dips, recovers on tariff hopes
Houston, 4 March (Argus) — The Mexican peso weakened on the US decision to go ahead with the 25pc tariff on all imports from Mexico and Canada Monday, but it recovered some losses today, suggesting the market is hopeful the tariffs may be short-lived. The Mexican peso lost 1.3pc to close at Ps20.71 to the US dollar Monday afternoon, according to data from Mexico's central bank. The declines came as US president Donald Trump late Monday reaffirmed that he intended to impose 25pc tariff on all products coming from Mexico, effective early 4 March. The peso on Tuesday continued its slide to the dollar, reaching Ps 21/$1 briefly in the intraday market before paring its losses and ending the day stronger at Ps 20.74/1$, according to Mexican bank Banco Base and Mexico's central bank data. Sentiment in the market is that the US administration will lift the tariffs sooner rather than later because of deep implications for the US economy. "The exchange rate and volatility have not skyrocketed, as the market speculates that the US government could withdraw the tariffs soon and that their imposition is mainly intended to give credibility to Donald Trump's threats," said Gabriela Siller, head of the financial analysis department at Banco Base, on her X account. The tariff will especially affect Mexican agricultural exports such as tomatoes, avocados or some vegetables, as well as the automobile industry, which heavily relies on Mexico to build cars that are sold in the US. In the energy sector, tariffs could partially disrupt Pemex's crude exports to the US, which would need to be diverted to other countries, especially to Asia, to avoid the 25pc tariff. Pemex primarily sells crude under evergreen or long-term contracts, allowing it to set prices and volumes buyers must accept. These agreements vary in duration, with some being indefinite and others requiring a minimum purchase period. The 25pc tariff imposed by Trump's administration could simply be added to Pemex's benchmark price and leave US buyers to decide whether to accept it. If they decline, Pemex could offer its crude at a discount to other buyers. Last week, Pemex management said it is prepared to change its commercial strategy in case the tariffs enter into effect. Pemex exported about 505,000 b/d of crude to the US last year, or 60pc of Mexico's crude exports in 2024, vessel tracking data show. The state owned company is likely to also be affected through its exports of high-sulphur fuel oil (HSFO) to US Gulf coast refiners, which are also optimized to convert HSFO — a low-value byproduct — into higher-value fuels like gasoline and diesel. The state-owned company exported around 130,000 b/d of HSFO to the US in 2024, down from 163,000 b/d in 2023, according to Vortexa. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
St Louis harbor water levels to improve
St Louis harbor water levels to improve
Houston, 4 March (Argus) — Water levels at the St Louis, Missouri, harbor are forecast to rise above 0ft this week, the National Weather Service (NWS) said, allowing for easier barge transit at the harbor after weeks of low water concerns. St Louis is forecast to receive multiple rounds of showers and thunderstorms today, including some hail, with around 1 inch of precipitation expected to pour over the greater St Louis area, according to the NWS. As water from the tributaries reaches the harbor into this weekend, levels as high as 10.7ft are expected by 11 March. This rain is long awaited as the St Louis harbor has been grappling with low water conditions since early January. These conditions were exacerbated by minimal rainfall in February, causing water levels to fall below -3ft at the terminal. Some barge carriers will finally be able to resume loading at their docks after calling off all barge movement due to the low water. Draft restrictions are anticipated to slowly loosen in the coming days as water levels rise, and more weight can be placed on barges. Current draft restrictions are between 9.6-10ft at St Louis. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU, US industry discuss methane regulation
EU, US industry discuss methane regulation
Brussels, 4 March (Argus) — EU officials today held technical talks with US firms to discuss the former's 2024 Methane Emissions Regulation (MER), to support "mutual understanding" on implementation, European Commission officials said. Commission officials added that there are no negotiations with the US on MER, which has caused concern among both US exporters to the EU and the European gas industry. Oil, gas and coal importers will from 1 January 2027 be required to demonstrate equivalent monitoring, reporting and verification (MRV) requirements at production level under the regulation. The commission is then expected to establish by 2030 methane intensity classes for producers' and companies' crude, natural gas and coal sold in the EU. The online discussion with US firms follows a "respectful" request by US energy officials to initiate an equivalence determination process. This would allow US methane measurement and reporting procedures to meet EU requirements. Senior US officials noted last year that the EU's equivalence determination process would take time and emphasised the need to begin discussions as soon as possible to ensure the continued reliable and stable supply of US gas to Europe. Commission officials downplayed the meeting today as part of an ongoing engagement on methane emission abatement. But the commission referred to the MER's requirement for importers of gas, oil and coal to provide national authorities with a report on the quantification of source-level methane emissions by 5 August 2025. EU officials are also cautious about drawing "far-reaching" conclusions in terms of the MER's potential effect on relations with US partners, they said. Talks between the EU policymakers and US industry come at a critical moment, according to trade association Eurogas secretary general Andreas Guth. "We hope any talks will be used to resolve concerns around the timeline, uncertainties, and broader impact of the EU's methane regulation, notably on security of affordable supply, while ensuring methane emissions are reduced," said Guth. Eurogas noted the MER's uncertain intensity calculation methodologies and extraterritorial implications. And the organisation said firms are already shying away from liability risks and potential penalties of up to 20pc of the importer's annual turnover. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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