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 108.35 USD/T on December 1, 2025, down 1.86% from the previous day. Over the past month, Coal's price has fallen 1.14%, and is down 20.33% compared to the same time last year, 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 December of 2025.

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.

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.

Analysis of the UK coal market showing a dramatic decline in consumption and production since 2013, with a forecast for modest growth driven by rising demand. Covers market size, trade, prices, and key suppliers.

Learn about the projected growth of the coal market in the UK over the next decade, driven by rising demand and expected to see a slight increase in performance. By 2035, market volume is forecasted to reach 3.3M tons, with a value of $576M.

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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 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?

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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 footprint re

In 2023, coal was by far the cheapest fossil fuel in terms of weight, with the price per metric ton amounting to 210.26 British pounds. By comparison, gas oil was the most expensive fossil fuel by weight, with the price per metric ton amounting to 1,100 British pounds.

United Kingdom Purchase Price: Ave: 2005=100: UK Power Producers: Coal data was reported at 46.043 GBP/Tonne in Sep 2013. This records a decrease from the previous number of 51.565 GBP/Tonne for Jun 2013. United Kingdom Purchase Price: Ave: 2005=100: UK Power Producers: Coal data is updated quarterly, averaging 43.011 GBP/Tonne from Mar 1990 (Median) to Sep 2013, with 95 observations. The data reached an all-time high of 71.028 GBP/Tonne in Jun 2011 and a record low of 27.418 GBP/Tonne in Mar 2003. United Kingdom Purchase Price: Ave: 2005=100: UK Power Producers: Coal 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.

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: Ave: UK Power Producers: Coal data was reported at 73.144 GBP/Tonne in Jun 2018. This records an increase from the previous number of 71.088 GBP/Tonne for Mar 2018. United Kingdom Purchase Price: Ave: UK Power Producers: Coal data is updated quarterly, averaging 40.561 GBP/Tonne from Mar 1990 (Median) to Jun 2018, with 114 observations. The data reached an all-time high of 82.748 GBP/Tonne in Jun 2011 and a record low of 26.129 GBP/Tonne in Mar 2003. United Kingdom Purchase Price: Ave: UK Power Producers: Coal 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.