US adds coking coal to the list of critical materials

The goal is to increase domestic production

The US Department of Energy (DOE) has added coking coal to the list of critical materials. This is stated in the report of the department last week.

“Achieving the policy goal of US dominance in steel production will require a sharp increase in domestic production and use of metallurgical coal,” the ministry said in its assessment.

The department concluded that the current steel market in the United States and its dependence on coking coal puts the industry on a path of significant import dependence. In addition, the report notes that the shared infrastructure and workforce that support both thermal and metallurgical coal production is under pressure from declining investment and operating capacity, and that appropriate intervention is needed.

According to Argus Media, the decision comes a month after US President Donald Trump ordered an assessment of the country’s coal resources. US coking coal producers could benefit from faster mining permits, tax credits and federal grants.

However, the decision may also have negative consequences for the US coal market, the agency notes. The market for seaborne coking coal is currently leaning toward oversupply, which has had a strong impact on price indices. Several US producers of this product are operating close to or above cost. Many of them have cut production starting in the fourth quarter of 2024.

American mining companies are also talking about the need for consolidation in the industry. However, it can be postponed if businesses in difficulty receive financial support from the government.

As GMK Center reported earlier, Australian premium coking coal prices rose by $5/t to $200/t FOB from April 25 to May 9. The increased demand was driven by Indian coke plants. Spot quotations in China decreased by $4/t to $175/t EXW during the same period, as local mines had an oversupply.