The US Coal Market Anticipates Bullish Outlook in November

The prices of Coal witnessed a slight decline in the previous month that is the month of October 2024. The prices were influenced by various factors including mining activities, downstream demand from steel producers, production cost and so on. The month of November continued to witness significant market trends amid changes in the market conditions.

As the winter season approached in the country, the demand for electricity is expected to increase. Due to the ongoing Russia-Ukraine war, and the uncertainties in the global market due to the geopolitical tensions, the prices of Natural gas increased in the month of November. The increase in natural gas prices made energy more expensive in various areas which are primarily dependent on Natural gas for energy generation. The approaching winter season is expected to increase the demand for energy in USA. As the natural gas market is currently under pressure, the dependence on Coal for energy generation will increase in the USA market. Increased Coal consumption both globally and domestically is expected to bolster the USA thermal Coal markets in the coming months.

The Coal exports may increase from major European countries as the winter season approached. The European Coal inventories are low indicating possibility of increased procurement in the month of November. The coming winter months and subsequent demand for energy generation in global and domestic market will be the driving factor for the prices of Coal in the market. The demand from Asia-Pacific region is also expected to be robust as steel production remained robust. The demand for Thermal as well as metallurgical Coal from major importing countries like China may increase in the near term which further push the prices in the upward direction. New stimulus measures in China may support the demand dynamics for USA Coal leading to upward market trend.

As the global energy market remained under stress due to rising geopolitical tensions amid ongoing conflict between Russia and Ukraine, Coal is expected to emerge as more dependable resource for energy generation in the Europe and USA. Russia’s President Vladimir Putin stated that the ballistic missile attack was a retaliatory measure in response to Ukraine’s usage of weapons made in the US and Britain. The conflict is expected to further cause supply disruptions for Natural gas in Europe leading to increased prices while the demand for electricity for heating increases. All the factors continued to support the anticipatory bullish price trend for Coal in the month of November 2024.