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Global coal supply summary: cost increases soften in 2018, while margins remain buoyant

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21 January 2019

Global coal supply summary: cost increases soften in 2018, while margins remain buoyant

Report summary

Coal producers kept their focus on maximising margin in a strong price environment. Even though the drivers were similar in 2018, we saw average cost increases ease for thermal coal and moderate for metallurgical coal. This contrasts with a significant year-on-year spike in 2017. Higher diesel costs and increasing strip ratios were offset by weakening currencies against the US dollar, higher productivity and lower royalties for metallurgical coal.

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