Coal Production Declined in Asia, Leading to an Increase in the Prices During December 2023

Coal Prices Inclined in Asia

The prices of Coal exhibited a vacillating curve in the initial days of December, ending with a notable hike in the Asian Market. The rise was mainly witnessed due to the low supply, coupled with high demand from the downstream industries. The analysis by the Procurement Resource reported a m-o-m hike of approximately 5.6% during the month of December 2023.

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Constant requirements for coal varieties from the downstream industries added pressure to the supply chain. The hike in the demand eventually strengthened the prices of Coal in the midst of a situation of low production.

Fluctuation Observed in the Coal Prices During the Initial Week of December 2023

A slight fluctuation was observed in the prices of Coal during the initial days of December 2023. The low prices proposed by the ports, mainly near the Chinese provinces, impacted the overall pricing of Coal in the Asian market.

Reduction in Production Activities Caused Supply Disruption in Asia

The decline in the production activities in various prominent production units located across the Asian Regions prompted a situation of uncertainty in the market flow. The safety inspection activities conducted near the coal mines stopped the production process at various units in China. The situation resulted in a tight market supply condition, boosting the prices of Coal in Asia.

Hike in the prices of Coal Exhibited a Positive Market Sentiment

The month of December 2023 began with an unstable price curve of coal and ended with a notable hike in the Asian market. The cold climatic conditions boosted the market demand for Coal from the downstream industries. Additionally, a rise in the costs proposed from the downstream ports strengthened the positive momentum noticed in the Asian market. The overall situation of low supply, with fine demand, resulted in an increase in coal prices during the final weeks of 2023.

China Plans to Strengthen Its Power Generation Plants Using Coal as a Fuel

The thermal power plants located in China are mostly powered by Coal, hinting at a major hike in the demand as China decides to empower its energy production units. It recently announced an increase in its energy production through coal-based and gas-based power plants in the upcoming months.

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According to the Procurement Resource, the prices in the Asian market for Coal increased during the period of December 2023. The market experienced a few ups and downs, which ended with an uptrend, marking a m-o-m increase of 5.6%. The combination of low supply and high demand amplified the prices of Coal during December, exhibiting a positive market for coal. The market anticipations suggest a similar status to be noticed during the upcoming months amid the constant demand from the downstream industries.


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