Coal Mid-Year Update 2026
About this report
The current conflict in the Middle East has shaken global energy markets and supply chains for a range of other key commodities. While disruptions to shipping through the Strait of Hormuz do not directly affect coal supply, coal markets are experiencing knock-on effects from the crisis.
In certain markets, coal is the main alternative to natural gas for power generation. As a result, higher natural gas prices could support coal demand in the electricity sector, which accounts for two-thirds of global coal consumption. In addition, a reassessment of energy strategies is leading some countries and industries to turn to coal, especially coal produced domestically, to reduce their exposure to gas market volatility.
Against a volatile energy backdrop, this mid-year update offers a comprehensive assessment of the latest trends in coal demand, production, trade and prices. It also provides updated forecasts for 2026 and 2027, taking into account recent market dynamics, economic conditions and geopolitical developments – including in China, which continues to drive global coal trends.