Coal Liquefication Price Trend and Forecast

Coal Liquefication Regional Price Overview

Get the latest insights on price movement and trend analysis of Coal Liquefication in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Coal Liquefication Price Trend for the First Half of 2024

In the first half of 2024, the coal liquefaction market faced a dynamic environment shaped by various factors influencing its price trends. Coal liquefaction, a process that converts coal into liquid fuels like synthetic crude oil, plays a vital role in providing an alternative to conventional petroleum products, especially in regions heavily dependent on oil imports. With crude oil prices rising in the first quarter due to geopolitical tensions, such as Israel's conflict with Hamas and supply disruptions caused by attacks in the Red Sea, there was a heightened interest in alternative fuel sources like liquefied coal. However, while crude oil prices surged, coal prices in Asian markets showed a declining trend in the first quarter of 2024, driven by surplus inventories and reduced demand. The large stockpiles, especially in India and China, resulted from increased domestic production, creating downward pressure on coal prices.
 

Coal Liquefication Price Chart

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Despite these low coal prices, the focus on enhancing coal liquefaction capacity, as announced by India's Finance Minister, highlighted the strategic importance of coal-derived fuels for sectors like steel. India plans to develop a 100 MT coal gasification and liquefaction capacity by 2030, aiming to reduce reliance on natural gas imports and curb emissions. Consequently, while the first half of 2024 saw mixed signals with declining coal prices, the push towards coal liquefaction underscored its significance as a sustainable energy source, driven by fluctuating crude oil markets and the need for energy security in key regions like Asia.

Analyst Insight

According to Procurement Resource, Coal Liquefication prices are expected to fluctuate in the coming months since the fluctuations in feedstock markets drive its market behavior.
 

Coal Liquefication Price Trend for the Second Half of 2023

After the depreciating run of the H1’23, the coal liquefication prices finally started to rise at the beginning of the third quarter in July. This market situation arrived mainly because of an increased global fuel demand. Since the OPEC+ decided to control the crude oil markets and raised the prices, the demand for coal derived fuels rose, pressurizing the facilities.

The uneven and unseasonal weather changes were also challenging the miners by worsening the mining conditions. So, since the demand rose amidst a supply constraint, the prices rose too. This continued till the fourth quarter as well. The shipping disturbances during this time constricted the supply chains even further. Overall, a reliable market performance was witnessed.

Analyst Insight

According to Procurement Resource, the Coal Liquefication prices are expected to balance out in the upcoming months; the market is likely to strive for stabilization.
 

Coal Liquefication Price Trend for the First Half of 2023

The market for coal liquefication suffered from a significant low demand and diminishing requirement of fuel worldwide. The decline was much more significant in the second quarter, especially in the month of June. The extreme weather conditions halted the mining activities. Additionally, the declining cost of energy and fluctuating prices of crude oil due to sanctions on imports from Russia are a problem for the coal liquefication market. Further, the transition of consumers from conventional methods of energy production to renewable resources and weak demand affected the market for coal liquefication.

Analyst Insight

According to Procurement Resource, the market of Coal liquefication is estimated to oscillate in the coming months, given the uncertainties in the world economy.

Procurement Resource provides latest prices of Coal Liquefaction. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.