Global Coal Market Experiences Price Decline in 2025

Market Normalization Drives Price Weakness

The global coal market witnessed a continued decline in prices throughout 2025. According to industry observers, this trend is primarily attributed to the normalization of market conditions rather than a crisis in demand. The Indonesian Coal Mining Association (APBI) Executive Director, Gita Mahyarani, noted that the price decrease is a result of a combination of factors including global demand dynamics, supply conditions, and energy policies.

Key Factors Behind Price Decline

1. Increased Domestic Production: Major coal-importing countries like China and India have significantly ramped up their domestic production. This surge has led to a substantial reduction in their import requirements, putting downward pressure on global coal prices.
2. Global Demand Dynamics: The overall demand for coal has been influenced by various factors including energy transition policies and economic conditions in major consuming countries.
3. Supply Factors: The global supply of coal has seen adjustments due to production changes in major coal-producing countries.
4. Energy Policies: Changes in energy policies, particularly those favoring cleaner energy sources, have also impacted coal demand and prices.

Industry Perspective

Gita Mahyarani emphasized that the current market situation is a result of multiple factors rather than a single cause. The industry is experiencing a normalization phase where prices are adjusting to reflect the current global energy landscape. The APBI's insights suggest that while the short-term outlook shows continued weakness in coal prices, the industry is adapting to the changing dynamics.