The average coal price fell by $1.13 a tonne last week, according to data compiled by Bloomberg New Energy Finance.
Coal is one of the largest commodities traded on the New York Stock Exchange, and its share price fell to a low of $1,038 a tonnes on Tuesday.
That’s down about 3.7% since last year.
The industry was already on the back foot in February, when prices fell by 6.4% after the start of a massive wildfires in Wyoming, Oklahoma and Texas.
“If the current trajectory holds, the coal price will continue to decline for some time,” said Chris Saldana, managing director of Bloomberg New Power Capital, a global mining and energy research firm.
The outlook for the coal industry remains uncertain. “
Coal’s price continues to decline, but it doesn’t look like the downward trend will last,” Saldano added.
The outlook for the coal industry remains uncertain.
U.S. coal producers are facing a glut of cheap natural gas and lower prices for renewable energy, and the government has cut billions in federal subsidies.
On Tuesday, the U.K. government cut subsidies for new coal-fired power plants, and China announced it will cut subsidies in two years.
China has a long history of cutting subsidies to utilities to spur coal production, and now the U:S.
market is looking even more like a Chinese one.
The U.N. has issued an interim global coal report, warning that coal use will decline by nearly 40% by 2050.
“We are not seeing coal prices rise for the foreseeable future,” said Steve Shultz, the head of the coal trade group in the U.: U.P.: The International Coal Association, a trade group for about 300 coal producers.
“The U.s. market for coal has become more competitive and the coal prices are coming down,” he said.
“That’s good news for coal.”