Coal Prices Set to Remain Flat Through 2028

Coal markets are entering a period of relative stability, with analysts projecting a flat price trajectory through the end of the decade. The forecast suggests that despite short-term supply constraints, long-term production increases from key consumers will cap any potential for a sustained price rally.

This outlook carries significant implications for global energy markets and particularly for Russian coal exporters, who face a challenging environment for maintaining their market share abroad.

In the immediate term, the first months of 2026 are expected to see some upward pressure on coal prices. This potential support is driven by a reduction in supply from two major global producers: Australia and Indonesia.

These supply cuts could create a temporary tightness in the market, offering a brief respite for producers. However, this support is not expected to trigger a major market shift.

• Reduced exports from Australian mines
• Lower output from Indonesian producers
• Temporary market tightness in early 2026

Looking further ahead to 2027 and 2028, the market dynamics are expected to shift. The primary factor restraining price growth will be the expansion of domestic production in the world's largest coal-importing nations.

As China and India ramp up their own coal output, their reliance on international markets is projected to decrease. This increased domestic supply will serve as a significant counterbalance to any price increases, effectively capping the market's upside potential for the remainder of the forecast period.

For Russian coal companies, this stable-to-soft price environment presents a persistent challenge. To remain competitive and retain access to crucial foreign markets, Russian exporters will likely have to continue relying on price discounts.

This strategy of offering competitive pricing will be essential for Russian coal to compete with alternative sources and maintain its export volumes in a market where major buyers are increasingly self-sufficient.

Russian coal miners will have to continue relying on discounts to hold onto external markets.

The global coal price forecast through 2028 is shaped by a delicate balance of opposing forces. On one side, supply-side constraints offer temporary price support; on the other, demand-side production increases create a ceiling for growth.

The interplay between these factors will define the market landscape for the next several years, with specific regional dynamics playing a crucial role in the final price outcome.

• Supply Constraints: Australia and Indonesia reducing exports
• Demand-Side Growth: China and India boosting domestic production
• Market Balance: Prices expected to remain range-bound

The coal market is poised for a period of consolidation rather than expansion. While short-term supply issues may provide temporary price support, the long-term trend points toward stability as major consumers increase their own production capabilities.

For industry stakeholders, the key takeaway is the need for strategic adaptation. Russian exporters, in particular, will need to navigate this environment with competitive pricing to secure their market position through the end of the decade.