Newcastle coal prices fall to four-year low: Rising output offsets strong demand

According to mehr reporter Price Newcastle coal settled at around $117.25 a tonne in January, near its lowest level in four years. The price drop came as a dramatic increase in production offset high demand from the world’s biggest consumers of fossil fuels.

According to the announcement of the China Coal Transportation and Distribution Association, the country’s production will reach 4.82 billion tons by 2025 with a growth of 1.5%. This increase will take place after record production in 2024. This association found it necessary to expand the extraction capacity with the aim of reducing the risks caused by carbon restrictions and the closure of mines due to the violation of safety protocols.

Meanwhile, power plants are facing unprecedented coal reserves; So that these reserves have increased by 12% in the two months ending in October.

Also, concerns about the failure of Beijing’s economic stimulus policies to stimulate economic growth affected the high consumption of thermal coal in 2024. In addition, heavy rains in China’s key production areas have made hydroelectric power plants preferable to coal-fired power plants.