Coal Prices in the USA Market Expected to Rise Amid Increased Demand and Market Dynamics
October 25, 2024 - The prices of Coal are expected to show marginal increase in the USA market in the month of October. As the presidential elections is around the corner, the USA market is showing nuanced market trends. The Coal prices in USA is expected to increase amid increased demand from various Coal importing countries like India. The end of the month of October may drive the prices higher due to the onset of Diwali season, a major Hindu festival in India. The onset of festival season and wedding season may push the demand for energy in the country and in turn push the demand for Coal in the market.
In the USA market, on 22nd October 2024, the government announced USD 428 million in grants to build or expand battery manufacturing and recycling plants and various other green manufacturing in the industries that have been struggling by recent closures of Coal mines and power plants. The administration of the President Joe Biden and Vice President Kamala Harris has pledged to help the industries that are struggling as the country reduces the burning of Coal for power generation. The initiative for green power generation and to curb the climate change would lead to overall declined demand in the market and may push the prices in the downward direction. In the past week the prices of Coal declined in the energy market on the global level influenced by the announcement by the Israeli government, that its troops would not attack Iran’s energy and nuclear facilities. As the concerns for supply eased, the prices are expected to decline due to the eased supply in the market.
In the coming weeks, the global supply for Coal might decline due to the forecast for cyclone season in Australia. The Australian Bureau of Meteorology forecasted the upcoming cyclone season as four cyclones are expected to hit off the Queensland coast this season that could impact the shipping and export ports. The declined supply may put upward pressure on the prices in the global market. With conflicting factors into play, the prices of Coal may show either trend in the market. In the export market, exports from the Port of Baltimore rebounded as the date released from the US Census Bureau. As the exports rebounded in the country, the demand for Coal must quickened.
Looking further, the prices of Coal in the upcoming months or weeks would depend on the demand from the energy sector. Competition from renewable energy sources may drive the prices in the downward direction, while the demand from APAC region may push the prices in the upward direction. In the supply side, weather conditions of the major exporting countries like Australia may also influence the global Coal market and influence the prices dynamics in the country.