BAKU, Azerbaijan, February 12. Cold weather in January led to a surge in U.S. coal consumption, particularly in regions like the midcontinent and mid-Atlantic, which rely heavily on coal for power generation, Trend reports.
In January 2025, coal consumption by the U.S. electric power sector rose by 7% compared to January 2024, prompting the U.S. Energy Information Administration (EIA) to adjust its forecast. The forecast now predicts coal consumption will rise to 386 million short tons (MMst) in 2025, a 4% increase from 2024.
The increase in coal demand is driven by expected higher U.S. power generation and higher natural gas prices in 2025. However, the EIA expects a decline in coal consumption to 368 MMst in 2026 as more coal plants are retired.
The increased consumption in January led to a significant drawdown in coal stockpiles, with U.S. power sector inventories falling by 11 MMst. By the end of January, coal stockpiles stood at 114 MMst, which is 6 MMst lower than initially projected. The EIA expects coal stockpiles to decrease further to 91 MMst by the end of 2025 due to a combination of rising consumption and falling production.
The forecast for U.S. coal exports has also been adjusted. After China imposed a 15% tariff on U.S. coal and with the Leer South mine temporarily idled, the EIA expects coal exports to decline to 102 MMst in 2025. However, despite these setbacks, coal exports are expected to remain strong, with a forecast of 101 MMst in 2026.
