After 6 days of collapse, coal prices finally rise from the grave

Coal prices were observed to rise after a report from the International Energy Agency (IEA) showed potential growth in global coal consumption going forward.

Reporting from Refinitiv, the price of coal on February 12, 2025 was recorded at US$ 107.4 / ton, up 0.66% compared to the closing trade on February 11, 2025 which amounted to US$ 106.7 / ton.

The strengthening of coal prices this time is the first time after being corrected for six consecutive days with a weakening of more than 10%.

As reported by cnbctv18.com, the IEA's latest report shows that India is poised to lead global coal consumption growth in the coming years, even as developed countries shift to greener energy.

Despite a global decline in coal demand, India, according to the report, is “poised to experience the largest increase in coal demand through 2027.”

According to the report, India's coal demand is expected to grow by 2.6% per year, reaching 1,421 Million Tons (Mt) by 2027. This translates to growth of more than 150 Mt between 2023 and 2027.

In the same period, coal demand in China will increase by less than 50 Mt while in the European Union it will fall by 68 Mt, according to the report.

NITI Aayog's Climate & Energy Dashboard shows that India's coal consumption exceeds its production. Data available up to FY24 shows that India's coal consumption stood at 1.26 Bt, with imports of over 260 Mt.

According to the IEA report, around 75% of India's total coal consumption is used for power generation. As of August 2024, coal-fired power plants amounted to 218 GigaWatts (GW) out of a total installed electricity capacity of 451 GW.

The steel and cement industries, which use non-electric thermal coal for various processes, will also drive coal demand in India. The IEA estimates that non-electric coal consumption could reach 382 Mt by 2027, an increase of 18% in just three years.