Coal market showed signs of strength in March of 2025 in the USA market. The increase in prices stemmed mainly from higher needs of core downstream industries like steel production and power generation. The supply remained strong, displaying ample availability. Production of Coal was sufficient to meet demand in the market. The increased demand pushed all market sentiments toward upward direction. With the imposition of tariffs for imports of steel, the domestic production witnessed a rise that put pressure on the consumption of coal in the market ultimately giving an upward push to the market sentiments.

On most supply sides, the USA coal supply dynamics stayed strong in March 2025 as reflected via production reaching 10.6 million short tons by late February 2025 indicating such strong supply chain dynamics. This same output helped to move forward Coal in the market now. The rise of coal output helped to meet both of metallurgical and thermal coal requirements without the triggering of any supply shortages. Overall, the strong production pace ensured reliable availability in sectors, reinforcing market stability amid total growing energy and industrial demand.

On the demand side, the overall demand outlook in the US remained moderately optimistic driving the market sentiments. The demand was primarily driven by rising crude steel production in the domestic market amid the imposition of tariffs on steel imports. Rising crude steel production particularly from global players like JSW Steel, supported steady metallurgical coal demand. Construction sector witnessed rising employment opportunities reflecting the improving demand for construction materials and steel in the market. Additionally, the US Energy Information Administration projected record power consumption in first quarter of 2025, which further pushed the demand for coal in electricity generation. While coal’s share in the energy mix remained uncertain due to the clean energy transition, the market continued to be heavily reliant of coal generated power leading to increased demand in the market.

According to the analysts at ChemAnalyst, the coal market is expected to continue to witness slight upward pressure in the coming months amid increasing consumption in power generation sector. As the summer season is approaching, the electricity demand for cooling is expected to rise in the global market leading to upward pressure in the market. Rising steel production due to improved demand from construction sector is further expected to push the demand fundamentals in short-term supporting the bullish market trends. The Bureau of Labour Statistics (BLS) nonfarm payroll report, with analysis by the National Association of Home Builders (NAHB), revealed that employment in the construction sector increased by 13,000 in March, following a gain of 14,000 in February reflected the improved market sentiments which may push the demand in the coming months.