Mobile Menu

Business Environment Profiles - Australia

Domestic price of black coal

Published: 17 December 2024

Key Metrics

Domestic price of black coal

Total (2025)

208 $ per tonne

Annualized Growth 2020-25

8.3 %

Definition of Domestic price of black coal

This report analyses the domestic price of black coal, including both coking and steaming coal. Coking coal, which is also known as metallurgical coal, is used in steel manufacturing applications. Steaming coal, which is also known as thermal coal, is used in fossil fuel electricity generation activities. As a very large proportion of black coal that is mined in Australia is exported, the Australian export price represents the domestic price of black coal. The data for this report is sourced from the Department of Industry, Science and Resources, and represents an average price over the financial year in current Australian dollars per tonne.

Analyze the wider world in which businesses operate

We measure the upstream and downstream ramifications on thousands of industries so businesses can monitor their external operating environment. Explore membership options today.

Purchase options

Included in an IBISWorld Membership

Our industry reports include 35+ pages of data, analysis and charts, including:

  • Industry Financial Ratios
    Industry Financial Ratios
  • Historical and Forecast Growth
    Historical and Forecast Growth
  • Industry Market Size
    Industry Market Size
  • Industry Major Players
    Industry Major Players
  • Profitability Analysis
    Profitability Analysis
  • SWOT Analysis
    SWOT Analysis
  • Industry Trends
    Industry Trends
  • Industry Operating Conditions
    Industry Operating Conditions

IBISWorld Premium Data

You need a Membership for access
to this data.

  • Access to your choice of 632
    industry reports
  • Access to full library of 185
    Business Environment Profiles

Get Started with an IBISWorld Membership today!

PURCHASE OPTIONS CONTACT US NOW
IBISWorld
Premium Data

You need a Membership for
access to this data.

Get Started with an IBISWorld Membership today!
PURCHASE OPTIONS

Recent Trends – Domestic price of black coal

IBISWorld expects the domestic price of black coal to drop by 18.9% in 2024-25 to $208.24 per tonne. The domestic black coal price is a function of the domestic prices of metallurgical and thermal coal. With most coal mined in Australia destined for export markets, domestic prices are heavily influenced by global market conditions. Demand for metallurgical coal will likely remain subdued through 2024, with an expected recovery in 2025. Despite stronger steel production in India, sluggish demand from China's property sector is contributing to weak steel production. Reduced demand from China is expected to place downward pressure on the benchmark price and export earnings. Thermal coal prices are also forecast to diminish, resulting from several factors, including higher-than-expected demand from China, reduced supply from Russian sanctions, and increased power demands in hot Asian markets. These factors are expected to contribute to the falling domestic price of black coal in 2024-25.

The Russia-Ukraine conflict has placed upward pressure on global coal prices over the two years through 2022-23. Prior to the conflict, Russia accounted for approximately 18% of global thermal coal exports and 9% of global metallurgical coal exports. Russia also accounted for approximately 17% of global natural gas production. Sanctions on Russian exports and supply disruptions due to the ongoing conflict have amplified the global shortage of energy commodities, causing prices to rise. In recent years, weather disruptions, like cyclones and flooding in Queensland and New South Wales, have constrained domestic coal supply, placing upward pressure on prices.

Subdued demand conditions caused by the COVID-19 pandemic weighed heavily on domestic coal prices over the two years through 2020-21. Global energy demand fell sharply in response to lockdowns as governments sought to control the pandemic. As a result, demand for Australia's coal exports weakened in key markets, including China and India. Restrictions placed on imports of Australian coal to China in late 2020 also constrained demand for Australian coal. However, improving relations between the two countries have resulted in a lift on China's unofficial ban on Australian imports in late 2022-23, with coal imports in particular, skyrocketing.

Both local and global black coal prices are highly volatile. Global demand for black coal typically moves more dynamically than supply, which results in very volatile prices and periods of over and under supply. For example, the domestic price of black coal skyrocketed by 61.3% in 2016-17, resulting from a dramatic shift in Chinese coal production. The Chinese Government announced in April 2016 that it would restrict the number of production days at Chinese coal mines from 330 to 276 per year. Furthermore, in July 2016 torrential rain in major coal producing province, Shanxi, led to a significant disruption in the supply of metallurgical coal. Lower global supply of coking coal boosted demand for Australian exports, contributing to a significant increase in the domestic price of black coal. Since April 2016, the Chinese Government has maintained a policy of curtailing coal production over the Chinese winter to improve environmental conditions. In 2018-19, the collapse of Vale's tailings dam in Brazil, which removed a significant share of high-grade iron ore from the global market, caused the domestic price of black coal to rise. This supply disruption forced steel mills to transition to low-grade iron ore, which requires greater quantities of coal to make steel. Overall, IBISWorld expects the domestic price of black coal to climb at a compound annual rate of 8.3% through the end of 2024-25.

Show more

5-Year Outlook – Domestic price of black coal

IBISWorld expects the domestic price of black coal to dip by 10.5% in 2025-26 to $186.28 per tonn...

Looking for IBISWorld Industry Reports?

Gain strategic insight and analysis on thousands of industries.

Trusted by More Than 10,000 Clients Around the World

  • IBISWorld client - VISA
  • IBISWorld client - ADP
  • IBISWorld client - Deloitte
  • IBISWorld client - AMEX
  • IBISWorld client - Bank of Montreal