September 24, 2025
Despite current low prices and some production cuts, metallurgical coal producers remain cautiously optimistic in the medium to long term due to constrained supply and growing demand for steel, especially in Asia. Australia dominates global exports, with supply being limited and new mine developments scarce. Prices have fallen to four-year lows amid ample supply and declining steel output in 2025, but demand is expected to rebound as developing countries like India and Vietnam expand their steel capacity, primarily through traditional blast furnace methods that require metallurgical coal. Meanwhile, green steel initiatives have slowed, and the construction of new steel plants continues to rely on coal, supporting long-term price strength. Overall, supply constraints and rising demand suggest that metallurgical coal prices could trend higher in the future.