Thermal Coal Prices

Australian thermal coal averaged USD 163.7 per metric ton in May, down 14.9% from April’s price and 58.1% lower than in the same month last year. On 31 May, the commodity traded at USD 135.0 per metric ton, 28.8% lower than on the same day of the previous month.

After rising for the first time in four months in April, the spot price for Australian thermal coal retreated again in May, reaching the lowest average level since November 2021. This was in part due to falling prices for oil and gas, both of which are coal substitutes. The spot price for Australian thermal coal was particularly heavily hit by economic data released in May showing a disappointing recovery in China; China is one of the world’s largest importers of coal and the lifting of its ban on imports of Australian coal had spurred hopes by investors of a rally in Australian coal prices.