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Coal price fall as China's demand drop
Aug 21,2025
China’s coal consumption accounts for almost 50% of the world’s total coal demand. China is reliant on the fossil fuel for two-thirds of total energy consumption and 80% of its electricity generation. However, as the environment conservation awareness is becoming increasingly popular in China, the year 2014 is a turning point for coal resources. Chinese government recently announced that it would launch a national emission trading scheme in 2016 to curb the fossil fuel consumption.
Chinese government has already combated the pollution by imposing taxes and bans and shut down the small and low efficient mines. In addition, China is looking for alternative energies such as natural gas and solar power. The coal price is affected by the policy. The benchmark Australian Newcastle export coal has fallen from the mid-$90 a tonne range in January to below $70 this week as supply continued to rise.
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