In the second quarter of 2023, the coal price for major power producers in the United Kingdom sky-rocketed to reach ***** British pounds per metric ton.

Though the price of coal for major power producers in the UK has fluctuated somewhat in the period of consideration, the price increases seen in 2021 and 2022 were unprecedented.

Coal fell to 110.90 USD/T on August 14, 2025, down 0.81% from the previous day. Over the past month, Coal's price has risen 0.82%, but it is still 26.07% lower than a year ago, 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 August of 2025.

Coal Price in the UK - 2023. Find the latest marketing data on the IndexBox platform.

The average price of coal for the manufacturing industry in the United Kingdom (UK) in 2022 increased significantly when compared to the previous year. At 165.52 British pounds per metric ton in 2022, it was nearly double the average price for one metric ton of UK manufacturing coal in 2021.

In 2024, the UK coal market decreased by -45% to $368M, falling for the second consecutive year after two years of growth. Over the period under review, consumption saw a sharp contraction. Over the period under review, the market attained the peak level at $8.3B in 2012; however, from 2013 to 2024, consumption stood at a somewhat lower figure.

Wholesale price for coal in the United Kingdom is projected to rise from **** to **** U.S. dollars per metric ton between 2020 and 2035, respectively. Figures are expected to remain at**** U.S. dollars per metric ton in 2040.

Over the five years through 2024-25, hard coal mining revenue is forecast to sink at a compound annual rate of 39.7% to £11.9 million, including an 83% fall in revenue in 2024-25 due to Merthyr (South Wales) stopping trading as it finished selling its coal reserves in 2023-24. Leaving Energybuild as the only large-scale coal mine in the UK. This follows the long term decline of the industry, caused by falling sales and weak profitability, which slashed the number of UK coal mines in the UK from 12 mines in 2019-20 to seven in 2024-25. Russia's invasion of Ukraine gave the industry a momentary lifeline, as the disruption to global energy markets caused coal prices to soar in 2022-23; supply restrictions and the sanctions imposed by many countries caused natural gas prices to skyrocket, driving many countries to look at coal to secure their energy needs and leading to a similar spike in coal prices. However, coal prices have mostly normalised in 2024-25, and demand is back to its long-term decline. Especially as the UK closed the last coal-powered energy station in the country in September 2024, axing the main market for coal. Over the five years through 2029-30, revenue is set to plummet at a compound annual rate of 10.6% to £6.8million. Mounting reliance on cleaner energy around the world will be a key driver of the industry's decline. Following the end of coal energy production in the UK, the main market for coal is iron and steel production. However, with the two British giants Tata Steel and British Steel planning to make their operations greener, demand for coal from this industry is also uncertain. Tata Steel (who used to buy almost a quarter of Energybuild’s metallurgical coal) closed its last blast furnace in September 2024, slashing demand. British Steel is now the only hope to prop up demand for metallurgical coal in the UK; the company also plans to switch to electric production, so demand will depend on when and how the company goes about this transition.

Graph and download economic data for Security Price Index, Coal, Iron, and Steel Shares for London, Great Britain (M11013GB00LONM324NNBR) from Apr 1887 to Mar 1935 about London, coal, iron, steel, United Kingdom, metals, securities, price index, indexes, and price.

The coal market in the UK is expected to experience a rise in demand over the next decade, leading to an increase in market performance. By 2035, the market volume is projected to reach 3.3M tons, with a value of $576M in nominal prices.

United Kingdom Purchase Price: Coal: Large Scale Industry data was reported at 3.302 GBP/GJ in Mar 2018. This records an increase from the previous number of 3.084 GBP/GJ for Dec 2017. United Kingdom Purchase Price: Coal: Large Scale Industry data is updated quarterly, averaging 1.510 GBP/GJ from Mar 1989 (Median) to Mar 2018, with 117 observations. The data reached an all-time high of 3.302 GBP/GJ in Mar 2018 and a record low of 1.150 GBP/GJ in Mar 2003. United Kingdom Purchase Price: Coal: Large Scale Industry data remains active status in CEIC and is reported by Department for Business, Energy and Industrial Strategy. The data is categorized under Global Database’s United Kingdom – Table UK.P008: Energy Overview: Purchase Price.

Oil was the most expensive fossil fuel bought by major power producers in the United Kingdom, at 5.87 pence per kilowatt-hour in the second quarter of 2024. Nonetheless, oil had a nine percent decrease compared to the same quarter a year prior. The average price of oil peaked in the third quarter of 2022, at 10.18 pence per kilowatt-hour. By comparison, at that same time, coal was the cheapest fuel, at 1.35 pence per kilowatt-hour.

Europe’s hard coal mining revenue is forecast to slump at a compound annual rate of 0.1% over the five years through 2025. Coal has been continually phased out in energy production, weighing on demand for the industry’s largest market and weakening revenue prospects for coal miners. Despite the long-term shift away from coal, supply chain disruptions caused by the Russia-Ukraine conflict have led to uncertainties surrounding the supply of natural gas, leading to many nations increasing their consumption of coal as a power source in 2022, spurring an increase in price and, as such, revenue. However, coal consumption has since eased with prices nosediving in 2023. In 2025, revenue is expected to climb by 23.4% to €23.4 billion, mainly because of rising coal prices as many European mines close down, limiting coal supply. Still, easing supply chain disruptions and falling gas prices have weakened demand for coal in the power generation industry, weakening prices and revenue. Power generators are continually phasing out coal as a fuel source to work towards environmental targets. Coal is also being slowly phased out of other key markets like steelmaking due to its negative environmental impact. Burning coal as a power source contributes significantly to greenhouse gas pollution and contains toxic and carcinogenic substances. Advances in electric arc furnaces and renewable energy production are accelerating this shift. Over the five years through 2030, revenue is forecast to climb at a compound annual rate of 1.3% to €24.963 billion. Demand from power generators will continue to stall as alternative fuel sources, like renewables and nuclear power stations, come online and become increasingly efficient. However, a slow phasing out of coal in many European countries, including major consumers like Germany and Poland, will cushion the fall in revenue over the next five years. Still, falling coal prices will contribute to weaker revenue and profitability, as the International Energy Agency forecasts that global hard coal prices will start to fall in 2026.

Graph and download economic data for Coal Exports, Prices for Great Britain (M04111GBM318NNBR) from Jan 1880 to Dec 1913 about coal, United Kingdom, exports, price index, indexes, and price.

Learn about the expected growth in the UK coal market over the next decade, with a forecasted increase in market volume and value by 2035.

Learn about the expected growth of the coal market in the UK over the next decade, with a projected increase in both volume and value terms. By 2035, the market is expected to reach 3.3 million tons and $576 million, respectively.

United States' electricity producers paid about 2.75 U.S. dollars per million British thermal unit for natural gas in 2024. Meanwhile, coal power plant operators paid an average of 2.48 U.S. dollars. In the last decade, the price of natural gas used for electricity generation has seen a net decrease, followed by a considerable rise in 2022. Coal, on the other hand, has consistently been among the cheapest fuel types used in the power sector. Natural gas prices and the influence of oil demand As it is often produced alongside oil, prices for natural gas are shaped by overall market developments of the oil and gas industry. When an overproduction of oil led to the oil glut between 2015 and 2016, natural gas prices fell notably. The same circumstance could be observed in 2020 when a fall in oil demand brought many benchmarks such as WTI and Brent to historic lows and also resulted in the Henry Hub price falling to a 21-year low. Apart from petroleum, which is an expensive and inefficient means of power production, fossil fuel costs for electricity generation have declined since 2022. Shift away from conventional energy sources Although renewable technologies were once thought to be very expensive, greater investments have quickly rendered their levelized cost of energy generation on par with fossil fuels, especially when deployed on a utility-scale. The aging coal fleet is a prime example of the increasing necessity to switch to carbon neutral technologies. Older coal plants are dealing with increasing maintenance costs as well as environmental regulations forcing the installation of pollution controls.

Snapshot img

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 metallurgical coal market is propelled by rising global steel demand, particularly in Asia Pacific, where infrastructure projects and smart city initiatives drive significant consumption. Technological advancements, such as 3D mine visualizers and proximity detection systems, enhance mining efficiency, supporting market growth. In North America, steady demand stems from automotive and construction sectors, while Europe's market thrives due to steel production in countries like Germany and Russia. Sustainability trends push for high-quality coal to support efficient, eco-friendly steel production. However, the volatility in prices of metallurgical coal, influenced by supply and demand dynamics and geopolitical factors, poses a significant risk for market participants.

Companies seeking to capitalize on the opportunities presented by this market must adopt strategic sourcing and pricing strategies. Additionally, investments in technological advancements, such as automation and mechanization, can help improve operational efficiency and reduce costs. Overall, the market offers substantial growth potential for companies able to navigate the price volatility and adapt to evolving market conditions.

What will be the Size of the Metallurgical Coal Market during the forecast period?

Request Free Sample

The market encompasses the production and trade of coal used primarily in steel manufacturing. This market exhibits dynamic behavior, influenced by various factors. High-sulphur utilization and medium-ash applications in iron ore smelting remain significant drivers, while price fluctuations in thermal coal markets can impact metallurgical coal demand. Environmental concerns, including air pollution and mining safety, necessitate continued innovation in mining industry practices and technologies. Mining resources and reserves, mining sustainability, and mining equipment automation are essential considerations for market participants. Steel industry outlook, infrastructure development, and sustainable infrastructure projects, such as bridge construction and commercial space development, shape demand for metallurgical coal.
Renewable energy alternatives and sustainable mining practices are gaining traction, potentially impacting the market's future direction. Mining project management, equipment maintenance, and mining investment are crucial elements in the metallurgical coal supply chain. Steel production technology advancements and iron ore smelting processes continue to evolve, influencing the market's size and direction. The transportation and logistics sector plays a vital role in delivering coal to consumers, ensuring efficient and cost-effective solutions. Mining industry outlook remains positive, driven by the ongoing demand for steel and infrastructure development.

How is this Metallurgical Coal Industry segmented?

The metallurgical coal industry 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
  Medium Coking Coal


End-User

  Iron and Steel Industry
  Chemical and Pharmaceutical
  Foundry Industry
  Non-Steel Production
  Power Industry


Geography

  APAC

    China
    India


  North America

    US
    Canada


  Europe

    France
    Germany
    Russia
    UK


  Middle East and Africa

    UAE


  South America

    Brazil


  Rest of World

By Application Insights

The steel making segment is estimated to witness significant growth during the forecast period.

Metallurgical coal plays a crucial role in steel manufacturing as it is the primary input for coke production in the blast furnace process and the electric arc furnace (EAF) route. Steel production, a key indicator of economic development, saw a 3.3% increase in global crude steel output to 145.5 million tons (Mt) in November 2023, according to the World Steel Association. Concurrently, the global apparent steel use per capita surpassed 200 kilograms, marking an over 10% rise. Both steel manufacturing processes, BF-BOF and EAF, necessitate metallurgical coal. While the former requires substantial volumes, the latter demands lower quantities.

The steel industry's growth is driven by infrastructure development, urbanization, and the increasing demand for construction, high-grade steel for various industries, and premium hard coking coal for medical applications. The market dynamics are influenced by factors such as coal quality standards, sustainable mining practices, carbon footprin