Coal Costs Surge 50% in Two Months
Coal prices have risen sharply, over 50% in two months, pressuring paper mills. The surge has prompted industry leaders to seek government intervention to secure supplies.
Coal prices have risen sharply, over 50% in two months, pressuring paper mills. The surge has prompted industry leaders to seek government intervention to secure supplies.
The Coal India subsidiary adjusted basic prices of selected raw coking coal grades for non-regulated buyers to correct inter‑grade differentials. The move is expected to marginally raise input costs for steelmakers, with only a modest overall impact due to the limited grade scope and small magnitude of the increase.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Coal Tar | USA | CIF | USD 1,033.48/MT | August 2026 |
| Coal Tar | Saudi Arabia | CIF | USD 1,050.48/MT | August 2026 |
| Coal Tar | Germany | CIF | USD 991.48/MT | August 2026 |
| Coal Tar | China | FOB | USD 877.48/MT | August 2026 |
| Coal Tar | Canada | CIF | USD 1,048.48/MT | August 2026 |
| Coal Tar | USA | CIF | USD 919.86/MT | July 2026 |
| Coal Tar | Saudi Arabia | CIF | USD 838.42/MT | July 2026 |
| Coal Tar | Germany | CIF | USD 865.05/MT | July 2026 |
| Coal Tar | China | FOB | USD 731.42/MT | July 2026 |
| Coal Tar | Canada | CIF | USD 935.00/MT | July 2026 |
Stay updated with the latest Coal Tar prices, historical data, and tailored regional analysis
Asia
In China, the average price of Coal Tar rose from ~USD 731.42/MT (FOB) in July to ~USD 877.48/MT in August, an increase of ~20.0%. Chinese coke producers faced higher input costs as a mining accident in Shanxi disrupted coking coal supply, while stricter safety supervision and heavy rain led to mine halts in key provinces. Reduced coke oven output also limited coal tar availability, since coal tar is a by-product of coking. Saudi Arabia also recorded a gain from ~USD 838.42/MT (CIF) to ~USD 1,050.48/MT during the same period. Import costs rose as Middle East shipping disruptions increased freight and restricted cargo flows, prompting buyers to pay more to secure supply.
Europe
In Germany, coal tar averaged approximately USD 865.05/MT (CIF) in July and climbed to about USD 991.48/MT in August, a rise of ~14.6%. Elevated gas prices linked to the Hormuz conflict raised energy costs for coke and distillation plants, while firmer Atlantic coal prices, partly due to disrupted Colombian supply, added to feedstock expenses. Steady demand from aluminium and carbon materials producers allowed suppliers to pass on these higher costs.
North America
In the USA, average coal tar import prices increased from nearly USD 919.86/MT (CIF) in July to roughly USD 1,033.48/MT in August, up ~12.4%. Canada followed with a gain of about 12.1%, from ~USD 935.00/MT (CIF) to ~USD 1,048.48/MT. Strong overseas demand drew more US metallurgical coal into export markets, reducing domestic coking feedstock availability.
Analyst Insight
According to Procurement Resource, coal tar prices are likely to remain elevated while coking coal supply stays constrained and energy costs stay high, although improving Chinese mine output could moderate the pace of increases.
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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.
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)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
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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