Brussels – Global coal prices fell sharply on Thursday, July 3, 2025, following the release of European Union data showing historic declines in coal production and consumption across the bloc. The trend, rooted in aggressive decarbonization policies and structural demand shifts, is pushing key benchmark contracts downward.
On the Newcastle Exchange, coal prices for July delivery fell by US$1.25, settling at US$111.25 per metric ton. Futures for August and September deliveries also declined by US$1.50 and US$1.55 respectively, closing at US$112.50 and US$113.85 per ton.
Rotterdam coal prices echoed the trend. July contracts dropped US$0.80 to US$108.20, while August and September futures fell US$1.35 and US$1.50, closing near US$108 per ton across the board.
According to official EU data, both coal production and consumption reached record lows in 2024, with annual output at 242 million tons and consumption at 306 million tons. That marks a 13% year-over-year drop in consumption and a 12% fall in production compared to 2023.
This decline follows an even steeper contraction in 2022, when the EU saw coal usage and output drop 23% and 21%, respectively. As a result, the share of coal in the bloc’s electricity generation mix has dwindled from 16% in 2022 to 12% in 2023 — a reflection of its accelerating energy transition.
Analysts say this structural downturn is not a temporary response to market volatility, but a long-term rebalancing influenced by environmental policy, renewable energy capacity growth, and declining demand from heavy industry sectors in Western Europe.
“Coal is rapidly losing its status as a baseload energy source in advanced economies,” said one analyst. “While emerging markets still provide some support for seaborne demand, the price floor is now more vulnerable due to persistent global oversupply and weak spot-market activity.”
The continued contraction of the European coal market signals broader implications for global energy flows, logistics networks, and thermal coal exporters — particularly those in Asia-Pacific who rely heavily on seaborne coal trade with the West.
With coal’s role in the global energy mix shrinking, market participants are expected to increase their hedging around volatility while redirecting investments toward cleaner fuel alternatives.
