U.S. Coal Exports Reached Six Year High During June 2024: EIA

Gross U.S. coal exports during June 2024 totaled 10 million short tons (MMst), the highest monthly value since October 2018, according to a Feb. 4 report published the U.S. Energy Information Administration. Yearly average U.S. coal exports were 9 MMst during 2024 and have increased yearly since 2020, when they averaged 5.8 MMst, amid the coronavirus pandemic.

U.S. coal exports consist of both metallurgical coal and steam coal that are produced in the U.S. and exported to other nations. Steam coal, also known as thermal coal, is used by coal-fired power assets to produce electricity and by consumers to heat their homes or businesses. Metallurgical coal is utilized primarily to produce steel, so demand for metallurgical coal is positively correlated with steel demand.

U.S. metallurgical coal has been sold on export markets for more than double the price of U.S. coal, used mostly as an input fuel during power production in six out of the last seven years. U.S. metallurgical coal from 2001 to 2023 sold on the export market at an average premium of 90 percent compared to the price of thermal coal. U.S. metallurgical coal prices rose significantly following the Russian invasion of Ukraine, and the subsequent trade limitations on coal from Russia. The restriction on Russian coal on the export market, amid global supply chain disruptions incentivized metallurgical coal exports from the U.S. market.

The Russian invasion of Ukraine led to a structural shift in the market, which has impacted trading dynamics for a number of energy sources. Russian pipelined gas to Europe has significantly declined since the Russian invasion of Ukraine. As a result, the EU is relying on other fuel sources for electricity generation. Accordingly, U.S. coal exports from the U.S. to Europe rose from 6.4 MMst in 2021 to 14 MMst in 2022, when sanctions on Russia took effect. U.S. exports to Europe totaled 10.5 MMst during 2023; however, that revival has faded.

During the first half of 2024, U.S. thermal coal exports to Europe totaled 2.4 MMst, 63 percent less than during the same period in 2023 due to weak demand as a result of above seasonal normal temperatures during winter, greater utilization of natural gas by power companies due to lower gas prices, and increased generation from renewable sources.

The agency forecast U.S. coal exports to surpass 10 million short tons in only two months during 2025 and 2026 – in December of each year.