Coal Markets: Russia's Export Plunge Costs Industry Billions

Russia has lost its position as the world's third largest supplier of thermal coal.

Exports from the country fell to 42.5 million tonnes during the first nine months of 2026. This represents a drop of 18.6% compared to the same period in 2025. The decline amounted to roughly 9.7 million tonnes in absolute terms. South Africa took over the third spot, increasing its shipments by 8% to reach 52.1 million tonnes.

The data comes from the analytics firm BigMint, as reported by the Russian media outlet The Insider. Global trade volume for thermal coal decreased by 3.2% to 602.5 million tonnes. Russian exporters accounted for approximately 49% of that total downturn. Their share of the global market slid from 8.4% to 7.1%.

Indonesia retained the top position with 240.3 million tonnes shipped, a 10% decrease. Australia held second place with 151.2 million tonnes, up 2%. Mongolia recorded the steepest growth, raising its shipments by 73% to 24 million tonnes.

Demand for Russian coal weakened sharply in key markets. Shipments to Turkey fell by 32% to 15.7 million tonnes. Deliveries to China dropped 26% to 15.1 million tonnes. India was the only major market with growth, as substantial discounts pushed imports up 63% to 9.6 million tonnes. That volume exceeded the total for all of 2025.

Industry officials cite a coal surplus in Chinese storage facilities and lower consumption at Turkish power plants as primary drivers of the slump. Rising costs for railway transport, freight, and vessel insurance have added further pressure on exporters.

The drop in sales has triggered a financial crisis in the Russian coal sector. Federal State Statistics Service data shows cumulative losses of RUB 178.2 billion, or about US$2.2 billion, between January and July. Sixty-four and a half percent of companies in the sector operated at a loss. In the Kuzbass region, 20 of 93 mines and open-cast pits sat idle as of August. The workforce in the coal sector shrank from 103,000 to 97,300 over the year. The Russian Ministry of Energy estimates total industry losses for 2026 will reach RUB 300 to 310 billion, approximately US$3.8 billion.