Coal Hits 14-Month High

Coal prices climbed above $119 per ton in late February, reaching their highest level since December 2024, as expectations of resilient global demand outweighed the ongoing transition toward cleaner energy sources. China, the world’s largest coal producer and consumer, continued to add new coal-fired power capacity as Beijing prioritizes energy security and grid reliability. Investors are also awaiting signals from China’s upcoming parliamentary meeting for further demand guidance. The annual “Two Sessions” will take place from March 4 to around March 11, when authorities are expected to release the 15th Five-Year Plan outlining policy objectives for 2026-2030. In the US, President Donald Trump has moved to bolster the struggling coal-fired power sector, allocating $175 million in federal funding to modernize six plants and directing the US Department of Defense to procure electricity from additional facilities.

Coal prices held above $115 per ton in late February, hovering near their highest level in a year, as expectations of resilient demand offset the longer-term global shift toward cleaner energy sources. China, the world’s largest coal producer and consumer, commissioned 78 GW of new coal-fired power capacity in 2025, marking the highest annual addition in a decade. The expansion underscores Beijing’s emphasis on energy security and grid stability during peak demand periods, even as non-fossil fuel generation capacity surpassed fossil fuel-based capacity for the first time. China retains the world’s largest coal power fleet and accounts for roughly 71% of global coal capacity currently under development. In the US, President Donald Trump has taken steps to support the struggling coal-fired power sector, allocating $175 million in federal funding to modernize six plants and directing the United States Department of Defense to procure electricity from additional facilities.

Coal prices climbed toward $120 per ton in mid-February, reaching their strongest levels in a year as China, the world’s largest producer and consumer, moved to streamline its coal sector amid signs of peaking consumption. Regulators approved a plan for China Shenhua Energy Co to acquire roughly $19 billion in assets from its parent, China Energy Investment Corp, including coal-to-chemicals, mining, power generation, and logistics operations. The transaction is set to deepen vertical integration and improve supply-chain efficiency, lifting Shenhua’s annual coal production capacity to 512 million tons. In the US, President Donald Trump moved to support the declining coal-fired power sector, directing $175 million in federal funds to upgrade six plants and instructing the Defense Department to purchase electricity from additional facilities.