Metallurgical coal futures allow investors to speculate on the future price of metallurgical coal. This article explores the key features of these futures contracts, the market participants involved, and the risks and benefits associated with trading them.

Coal decreased 28.50 USD/MT or 22.75% since the beginning of 2025, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Coal - values, historical data, forecasts and news - updated on March of 2025.

Met coal futures are financial contracts that allow individuals and companies to speculate or hedge on the future price of metallurgical coal. Metallurgical coal, also known as coking coal, is a type of coal that is used in the steelmaking process. It has specific properties that make it suitable for the production of coke, which is used as a fuel and reducing agent in blast furnaces. Learn more about met coal futures and their role in managing price risk in the metallurgical coal market.

Coking coal futures prices refer to the contracts traded on commodity exchanges for future delivery of coking coal. This article explains how the prices are influenced by various factors and the role of commodity exchanges in facilitating trading. It also discusses how traders and investors can take long and short positions, and the importance of monitoring factors influencing coking coal prices.

It is forecast that the average price for hard coking coal in 2026 will be 21.80 nominal U.S. dollars per metric ton. Meanwhile, the average price for semi-soft coking coal is forecast to be 138.20 nominal U.S. dollars per metric ton that year.

Learn about coking coal futures and how they allow investors to speculate on the future price of coking coal. Discover the benefits and risks of trading these futures contracts and their role in hedging and price discovery in the coal industry.

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Metallurgical Coal Market Size 2025-2029

The metallurgical coal market size is forecast to increase by USD 99.6 billion at a CAGR of 4.8% between 2024 and 2029.

The market is driven by the increasing demand for steel and the rise in several smart city projects, leading to an increase in consumption of coal. However, the market faces challenges such as volatility in metallurgical coal prices due to supply and demand imbalances. To mitigate this, coal blending and coal characterization through techniques like coal washing, coal property analysis using vitrinite reflectance and petrography, and coal reserve exploration are crucial.
Coal washing enhances coal quality by removing impurities, while coal characterization provides insights into coal's caking index, thermal maturity, and carbonization properties. Fossil carbon's role in the coal industry is significant as it is a critical feedstock in steel manufacturing and carbonization processes. The demand-supply gap in the market necessitates efficient coal production and utilization strategies.

What will be the Size of the Market During the Forecast Period?

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How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Steel making
  Non-steel making


Type

  Hard coking coals
  Semi-soft coking coals
  Pulverized coal injection


End-User

  Construction
  Transportation
  Health Care
  Agriculture
  Others


Geography

  APAC

    China
    India
    Japan


  North America

    Canada
    US


  Europe

    Germany
    UK
    France


  Middle East and Africa

    UAE


  South America

    Brazil

By Application Insights

The steel making segment is estimated to witness significant growth during the forecast period. Metallurgical coal plays a crucial role in the steel industry, serving as the primary feedstock for coke production in steelmaking processes. The BF-BOF (Basic Oxygen Furnace-Blast Furnace) and EAF (Electric Arc Furnace) routes are the two primary methods for producing steel. In the BF-BOF process, large quantities of metallurgical coal are required to produce carbon-rich coke, which is essential for reduction of iron ore and the production of pig iron. In contrast, the EAF process uses scrap metal and requires lower volumes of metallurgical coal for anaerobic heating. While both methods contribute to steel production, the BF-BOF process was the dominant method used in 2020.

Furthermore, the consumption of steel is often used as an economic development indicator, and this growth in steel production highlights the ongoing economic recovery. The various types of metallurgical coal, including anthracite, bituminous coal, sub-bituminous coal, and lignite, are utilized based on their carbon content and caking ability in the steelmaking process.

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The steel making segment was valued at USD 160.30 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 85% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period.

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The market in the Asia-Pacific (APAC) region is projected to expand at a faster pace compared to other regions, driven by the significant demand from the steel industry. Factors such as industrialization and infrastructure growth in developing countries like China and India are fueling the demand for steel, which relies on metallurgical coal as a primary raw material for its production. With the rapid urbanization of cities in Asia, the need for steel is high for infrastructure development. Metallurgical coal, with its high carbon content, is essential for producing carbon-rich coke required for coking processes in steelmaking. In 2023, China, Australia, Indonesia, and India were the leading contributors to the growth of the market in APAC.

Furthermore, the demand for this coal type is particularly high in countries like China, which is the world's largest consumer and importer of metallurgical coal. The primary use of these in APAC is for electricity generation and household heating, as well as anaerobic heating and the production of pig iron from iron ore. The caking ability of metallurgical coal is crucial for its use in the steel industry, ensuring the successful production of high-quality iron and steel products.

Market Dynamics

Metallurgical coal, also known as coking coal, plays a vital role in the steelmak

Learn about the factors influencing Australian coking coal prices, including supply and demand dynamics, global economic conditions, and production costs. Discover how weather events, trade tensions, and the COVID-19 pandemic have impacted prices in recent years. Explore the future outlook for Australian coking coal and the factors that will continue to shape market volatility.

One of the leading economic industries in Australia, coal mining has contributed significantly to the local economy. In 2024, the price of Australian coal was around 136 U.S. dollars per metric ton. Coal market The contribution of the coal mining industry to Australia’s economy was valued in the billions of Australian dollars. Coal consumption is much lower than production in Australia, so most of the mined coal is exported. In fact, Australia exports the most coal by value out of any other country, with major export partners including China and India. Australia’s reliance on its mining exports may lead to potential problems, particularly if long-term demand drops due to emerging alternative fuel sources, climate action, and increased competition from other coal producing countries. The effect on the tens of thousands of Australian workers in the mining industry may have already been felt, with lower employment numbers recorded recently. Environmental impact Of late, the fugitive emissions from coal mining have come under fire due to their contribution to environmental pollution. In Australia, emissions from underground coal mines were projected to total 19 million metric tons of carbon dioxide equivalent by 2030. With a global focus on reducing air pollution and mitigating climate effects, the future of mining in Australia may not be as certain as it once was.

The global coal price index reached 154 index points in February 2025. This was a decrease compared to the previous month, which also reflected a fall in the overall fuel energy price index. The global coal index expresses trading of Australian and South African coal, as both countries are among the largest exporters of coal worldwide. How coal profited from the 2022 gas crunch Throughout 2022, coal prices saw a significant net increase. This was largely due to greater fuel and electricity demand as countries slowly exited more stringent coronavirus restrictions, as well as fallout from the Russia-Ukraine war. As many European countries moved to curtailing gas imports from Russia, coal became the alternative to fill the power supply gap, more than doubling the annual average price index between 2021 and 2022. Main coal traders and receivers Although China makes up by far the largest share of worldwide coal production, it is among those countries consuming the majority of its extracted raw materials domestically. In terms of exports, Indonesia, the world's third-largest coal producer, trades more coal than any other country, followed by Australia and Russia. Meanwhile, Japan, South Korea, and Germany are among the leading coal importers, as these countries rely heavily on coal for electricity and heat generation.

China Open Interest: Dalian Commodity Exchange: Coking Coal data was reported at 546.068 Lot th in 21 Mar 2025. This records an increase from the previous number of 531.467 Lot th for 20 Mar 2025. China Open Interest: Dalian Commodity Exchange: Coking Coal data is updated daily, averaging 202.959 Lot th from Mar 2013 (Median) to 21 Mar 2025, with 2915 observations. The data reached an all-time high of 637.070 Lot th in 23 Oct 2013 and a record low of 32.823 Lot th in 28 Jan 2022. China Open Interest: Dalian Commodity Exchange: Coking Coal data remains active status in CEIC and is reported by Dalian Commodity Exchange. The data is categorized under China Premium Database’s Financial Market – Table CN.ZB: Dalian Commodity Exchange: Commodity Futures: Open Position: Daily.

China Settlement Price: Dalian Commodity Exchange: Coking Coal: 5th Month data was reported at 1,060.500 RMB/Ton in 26 Mar 2025. This records an increase from the previous number of 1,059.000 RMB/Ton for 25 Mar 2025. China Settlement Price: Dalian Commodity Exchange: Coking Coal: 5th Month data is updated daily, averaging 1,249.500 RMB/Ton from Mar 2013 (Median) to 26 Mar 2025, with 2918 observations. The data reached an all-time high of 3,682.500 RMB/Ton in 19 Oct 2021 and a record low of 490.500 RMB/Ton in 24 Nov 2015. China Settlement Price: Dalian Commodity Exchange: Coking Coal: 5th Month data remains active status in CEIC and is reported by Dalian Commodity Exchange. The data is categorized under China Premium Database’s Financial Market – Table CN.ZB: Dalian Commodity Exchange: Commodity Futures: Settlement Price: Daily.

The North America Coking Coal report provides a detailed analysis of emerging investment pockets, highlighting current and future market trends. It offers strategic insights into capital flows and market shifts, guiding investors toward growth opportunities in key industry segments and regions.

Newcastle thermal coal had an average price forecast of 130.80 nominal U.S. dollars per metric ton for 2024, as of June and July 2024. During the period in consideration, the forecast presents a trend of continuous decrease. By the end of 2028, Newcastle thermal coal price is expected to drop to 102.80 nominal U.S. dollars per metric ton. The Newcastle (NEWC) thermal price for coal is the benchmark for seaborne coal contracts within the Asia-Pacific region, which is home to the largest coal producing countries.

China Settlement Price: Dalian Commodity Exchange: Coking Coal: 2nd Month data was reported at 1,026.000 RMB/Ton in 25 Mar 2025. This records an increase from the previous number of 1,018.500 RMB/Ton for 24 Mar 2025. China Settlement Price: Dalian Commodity Exchange: Coking Coal: 2nd Month data is updated daily, averaging 1,271.500 RMB/Ton from Mar 2013 (Median) to 25 Mar 2025, with 2917 observations. The data reached an all-time high of 3,896.500 RMB/Ton in 18 Oct 2021 and a record low of 530.000 RMB/Ton in 20 Jan 2016. China Settlement Price: Dalian Commodity Exchange: Coking Coal: 2nd Month data remains active status in CEIC and is reported by Dalian Commodity Exchange. The data is categorized under China Premium Database’s Financial Market – Table CN.ZB: Dalian Commodity Exchange: Commodity Futures: Settlement Price: Daily.

Learn about the factors that impact the price of coal per ton, including coal quality, geographical location, market demand, transportation costs, and government policies. Find out the general price ranges for thermal and metallurgical coal, and understand the volatility and potential future trends in coal prices.

First, domestic prices were measured based on the Polish Power Coal Market Index for sales to professional and industrial energy (PSCM1). Since 2017, coal prices in Poland have been steadily increasing, reaching the highest price of 727.06 zloty/metric ton in the third quarter of 2023. Global coal prices were measured by the ARA index (based on the prices of futures contracts in the ports of Amsterdam-Rotterdam-Antwerp). The ARA index has fallen since the third quarter of 2018, closing the second quarter of 2020 at 222 zloty/metric tons. In the fourth quarter of 2024, coal prices were lower on the global market than on the Polish market (considering the current USD/PLN exchange rate), reaching over 461 zloty per metric ton.

China Settlement Price: Dalian Commodity Exchange: Coking Coal: 1st month data was reported at 951.500 RMB/Ton in 24 Mar 2025. This records an increase from the previous number of 948.000 RMB/Ton for 21 Mar 2025. China Settlement Price: Dalian Commodity Exchange: Coking Coal: 1st month data is updated daily, averaging 1,283.000 RMB/Ton from Mar 2013 (Median) to 24 Mar 2025, with 2916 observations. The data reached an all-time high of 3,995.000 RMB/Ton in 20 Oct 2021 and a record low of 550.000 RMB/Ton in 15 Sep 2015. China Settlement Price: Dalian Commodity Exchange: Coking Coal: 1st month data remains active status in CEIC and is reported by Dalian Commodity Exchange. The data is categorized under China Premium Database’s Financial Market – Table CN.ZB: Dalian Commodity Exchange: Commodity Futures: Settlement Price: Daily.

China Open Position: Dalian Commodity Exchange: Coking Coal data was reported at 450.531 Lot th in Feb 2025. This records an increase from the previous number of 294.868 Lot th for Jan 2025. China Open Position: Dalian Commodity Exchange: Coking Coal data is updated monthly, averaging 196.754 Lot th from Mar 2013 (Median) to Feb 2025, with 144 observations. The data reached an all-time high of 576.324 Lot th in Nov 2013 and a record low of 32.823 Lot th in Jan 2022. China Open Position: Dalian Commodity Exchange: Coking Coal data remains active status in CEIC and is reported by Dalian Commodity Exchange. The data is categorized under China Premium Database’s Financial Market – Table CN.ZB: Dalian Commodity Exchange: Commodity Futures: Open Position.

Learn about the factors influencing the price of coking coal, including global demand, supply, trade policies, geopolitical tensions, and economic growth. Understand how fluctuations in the global steel industry and regional markets impact coking coal prices. Explore the impact of the COVID-19 pandemic and discover the future factors that will influence coking coal prices.