The market for U.S. %ThermalCoal is forecast to rise in 2025 as consumption grows both domestically within America and around the world.
Miners of thermal coal in the U.S. are ramping up production and the International Energy Agency (IEA) recently revised its 2030 global coal consumption forecast upwards by 6%.
Furthermore, coal analysts at S&P Global Commodity Insights project that U.S. thermal coal exports will increase to 55 million metric tons in 2025.
The top five destinations for U.S. thermal coal exports are India, Morocco, Egypt, China, and Japan. Thermal coal is used to generate electricity and heat.
Despite the likelihood of stronger demand in coming months, North American coal prices have been on the decline.
The price of thermal coal is currently at $97.71 U.S. per metric ton, down from $98.85 U.S. in October of this year.
However, many analysts expect prices to rise in the New Year as demand accelerates and exports from the U.S. steadily increase.
Pennsylvania coal miner %ConsolEnergy (NYSE: $CEIX) recently said that it is starting to see an uptick in European thermal coal demand with buyers securing cargo for the cold winter months.
European coal inventories are low and concern over natural gas supplies persist heading into winter, said Consol Energy.
At the same time, the coal industry is anticipating less stringent environmental regulations under a second Donald Trump presidency.
Demand for thermal coal in China is forecast to pick-up as new stimulus measures announced by the government in Beijing is expected to support demand for U.S coal products.
