The U.
S. Department of Energy (DOE) has added coking coal to the list of critical materials. This is stated in the message of the department last week.
The agency concluded that the current steel market in the United States and its dependence on coking coal puts the industry on a path of significant dependence on imports. In addition, it is noted that the overall infrastructure and workforce supporting the production of both energy and metallurgical coal are under pressure due to reduced investment and operating capacity, so appropriate intervention is required.
According to Argus Media, the decision was made a month after US President Donald Trump ordered an assessment of the country's coal resources. American coking coal producers can benefit from faster mining permits, tax breaks, and federal grants.
However, the decision may have negative consequences for the American coal market, the agency notes. The offshore coking coal market is currently leaning towards oversupply, which has had a strong impact on price indices. Several American manufacturers of these products operate close to or above cost. Many of them have reduced production starting in the fourth quarter of 2024.
American mining companies are also talking about the need for consolidation in the industry. However, it may be postponed if a business in a difficult situation receives financial support from the state.
