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Since the beginning of industrialization in the 19th century, coal has had a significant impact on the world's energy supply. To this day, coal remains one of the main energy sources among all non-renewable resources. The use of hard coal, the most important type of coal, has increased even slightly in recent years. Coal also has the largest reserves of all non-renewable energy sources. Global coal production has continued to increase in recent years, reaching the equivalent of nearly 168 exajoules in 2019. In 2020, global coal production will decline slightly to 159.6 exajoules. The top hard coal producing countries are China, India, the United States, Australia and Indonesia.

ICI Coal, the benchmark for Indonesia, traded just around $47 a ton. Significant Australian coal company Whitehaven reported that last month's export activity was hindered by unfavorable weather conditions. However, despite a growing proportion of power coming from renewable sources and a decrease in heating demand as a result of a warmer Chinese winter, futures fell 20% this year. As a result, thermal coal imports fell 13.1% yearly to 91.5 million tons in the year ending in April, as China's fossil fuel power output fell 4.7% annually in the first quarter. On the supply front, Indonesian production hit a record 836 million tonnes last year, exceeding its initial target by 18% even though growing investments in alternative power sources capped the demand for thermal coal. Further, China plans to boost output by 1.5% to 4.82 billion tons this year after the record amount of output in 2024.

The global coal market's supply and demand will change as a result of the U.S.-China trade war, particularly in light of China's 15% tariff on American coal in retaliation for President Trump's 10% tariff on Chinese imports. India continues to be the world's largest user of U.S. coal, using around 25% of all U.S. coal exports, despite China being the world's largest importer. In contrast, 2024 data obtained from the EIA shows that only 11% of U.S. coal exports are sent to China. Chinese steelmakers may look for alternate coal supplies as a result of supply chains becoming more complicated due to uncertainty in U.S.-China trade ties. The United States may decide to diversify its coal export market or cut output in order to decrease coal exports to China as a result of tariffs. Despite being the largest importer of coal worldwide, China also depends on other suppliers, including Russia, Australia, Mongolia, and Indonesia. China might shift its focus more toward other suppliers, like those in Australia and Mongolia.