Coal India output decline tightens supply
Coal India's quarterly production fell while power demand grew, straining availability. Rising mining costs and higher e-auction realisations point to continued upward pressure on coal prices.
Coal India's quarterly production fell while power demand grew, straining availability. Rising mining costs and higher e-auction realisations point to continued upward pressure on coal prices.
War in West Asia disrupts LNG supply through the Strait of Hormuz, forcing economies to increase coal-fired power generation. This surge in demand is tightening the coal market and pushing prices upward.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Coal Tar | USA | CIF | USD 887.32/MT | June 2026 |
| Coal Tar | Saudi Arabia | CIF | USD 835.37/MT | June 2026 |
| Coal Tar | Germany | CIF | USD 853.86/MT | June 2026 |
| Coal Tar | China | FOB | USD 732.37/MT | June 2026 |
| Coal Tar | Canada | CIF | USD 887.32/MT | June 2026 |
| Coal Tar | USA | CIF | USD 880.98/MT | May 2026 |
| Coal Tar | Saudi Arabia | CIF | USD 854.13/MT | May 2026 |
| Coal Tar | Germany | CIF | USD 855.24/MT | May 2026 |
| Coal Tar | China | FOB | USD 761.79/MT | May 2026 |
| Coal Tar | Canada | CIF | USD 880.98/MT | May 2026 |
Stay updated with the latest coal tar prices, historical data, and tailored regional analysis
Asia
In Q2’26, Coal Tar prices in China declined to ~USD 793.44/MT in April and ~USD 732.40/MT in June, showing a ~7.7% decrease. The market remained influenced by steel-sector conditions, coke plant operating rates and carbon-product demand. Weak steel margins caused operating adjustments among coke producers, affecting coal tar availability. Although infrastructure and manufacturing activity provided some support, property-sector weakness limited steel demand and reduced momentum in downstream carbon materials. Demand from coal tar pitch producers remained linked with aluminium anode manufacturing and graphite electrode applications, but cautious purchasing limited price recovery. China’s large steel and coke production base continued to make regional coal tar supply highly dependent on blast furnace activity.
Europe
Coal Tar prices in Germany were ~USD 919.44/MT in April and ~USD 853.90/MT in the last month of Q2’26, showing a ~7.1% decrease. European markets faced pressure from weaker steel production, lower coke oven utilisation and subdued industrial demand. Limited recovery in steel-consuming industries reduced demand from carbon black, aluminium and specialty chemical producers. The shift toward lower-carbon steel production also affected traditional coke-based supply chains, reducing long-term demand visibility. High-efficiency and decarbonisation-focused steel investments continued changing regional production patterns, limiting reliance on conventional coke production routes.
North America
Coal Tar prices in the United States were ~USD 880.44/MT in April and ~USD 887.00/MT in June. The market remained balanced as coke production levels, steel activity and aluminium demand supported consumption. Coal tar pitch demand from aluminium anode production provided stability, while carbon black demand followed automotive and rubber-sector conditions. Domestic supply growth remained limited due to dependence on integrated steel and coke facilities. Stable industrial demand prevented significant price declines, while the absence of strong steel expansion limited larger increases.
Analyst Insight
According to Procurement Resource, coal tar prices are expected to remain influenced by steel production trends, coke oven utilisation and aluminium-sector demand, with regional supply conditions driving market movements.
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Asia
Coal tar prices in Asia followed a soft-to-stable trend in Q1’26, initially declining due to weak demand from deep-processing sectors and stabilizing later with steady feedstock supply. China’s raw coal production reached 1.203 billion tons in Q1’26, ensuring sufficient upstream availability and supporting coal tar output. Coke-linked supply remained stable, but downstream products such as industrial naphthalene and anthracene oil showed weak demand, limiting recovery. The Iran war affected sentiment indirectly through energy and freight volatility rather than direct coal tar trade disruption.
Europe
Coal tar prices in Europe remained under pressure in Q1’26 due to weak steel production and reduced coke oven activity. Supply was constrained by lower coke output, while downstream demand from carbon black and aluminum anodes remained cautious. The Strait of Hormuz disruption added cost pressure, as the route carries about one-quarter of global seaborne oil trade, increasing energy and logistics costs for processing industries. This raised operating expenses but did not translate into stronger demand, keeping the market subdued.
North America
Coal tar prices in North America remained steady to slightly soft in Q1’26 due to balanced domestic supply and moderate downstream demand. Structural shifts in steel production limited coke output, with U.S. coke production at around 10 million short tons annually, restricting coal tar generation. Domestic supply reduced exposure to global disruptions, but higher fuel and freight costs after the Hormuz closure added indirect pressure.
Coal tar is a thick black liquid formed due to heating the coal in the absence of air. It is a mixture of hydrocarbon compounds used in medications, road paving, rubber production, coking and smelting etc.
C14H18ClN5O4
Paints, perfumes, synthetic dyes, photographic material, drugs, explosives, insecticides, pesticides, cosmetics, ointments
JFE, Koppers Industries, etc., RuTGERS, Baoshun
Pitchtar, Fluxol ST, Pyrolized pitch
CurrencyUS$ (Data can also be provided in local currency)
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Coal tar is produced as a byproduct of the carbonization or pyrolysis of coal in which the coal is heated in the absence of air. Coal tar is obtained while cooling the gas formed during the destructive distillation of coal.
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