China and the weather played important roles in the 2017 coal industry. Cyclone Debbie's impact lasted far longer than the bad weather. And, once again, policy action in China agitated markets, lifted prices, intensified volatility, and produced a large measure of uncertainty. Suppliers eyed high prices longingly, but the hard lessons of the recent past made them cautious about exuberant expansion. Still, prices helped them repair balance sheets. India continues to chip away at power industry reform adding incrementally to coal's possibilities. In the US, natural gas and coal remain locked in a price battle that has no end. After years of decline, encouraged by falling prices, coal costs turned upward in 2017. Even so, margins rose and M&A activity rebounded somewhat. But, there was also growing proof that financing new coal projects is becoming more difficult.