The resilience of U.S. coal in the global market Image By EPN Staff The United States still exports a significant amount of coal, reaching a six-year high in 2024, according to the U.S. Energy Information Administration (EIA). In fact, U.S. coal exports have been increasing since 2020, when they took a dip during the pandemic, and nearly 40% of U.S. coal exports move through the ports in Hampton Roads, Virginia. India is the top destination for U.S. coal by a long shot. China has been a top 5 importer, and new tariffs may affect the market. Why it matters The coal export market is complex, involving both thermal coal used for power generation and metallurgical, or coking, coal used primarily for steel production. Much of the coal China uses to fire power plants comes from Chinese mines, but it’s a major importer of coking coal, and it’s the largest overall importer of coal worldwide. China continues to build out its renewable energy infrastructure at a record pace but the nation still relies heavily on coal. In fact, China approved 66.7 gigawatts of new coal-fired power capacity in 2024 and construction of 94.5 gigawatts more was already underway, the highest level in nearly a decade, according to the Centre for Research on Energy and Clean Air. “Instead of replacing coal, clean energy is being layered on top of an entrenched reliance on fossil fuels,” the CREA reports. Top coal-producing states U.S. coal production occurs across 21 states, but the vast majority is produced in just five states: Wyoming – 41% West Virginia – 14% Pennsylvania – 6.7% Illinois – 6.3% Kentucky – 4.8% The bigger picture While the U.S. is a net exporter of coal, some areas – including plants along the Gulf Coast – find it cheaper to import coal than ship it from U.S. mines, according to the EIA. Most of Virginia's coal exports are metallurgical, and those customers are typically in Europe and Brazil. Asian markets are harder to reach from Virginia, in part because Australian mines can reach them cheaper. Without China’s appetite for coal, prices would likely “really go down,” Reuters reported in January, quoting an Indonesian mining executive.
