Key facts
- Uzbekistan liberalised its coal market on June 1, removing state-set prices.
- Prices for household coal grades remained stable, with D-grade thermal coal near $111.28/t and SS-grade near $38/t.
- Utilities saw prices for D-grade thermal coal (0-300mm) hold steady at $80.50/t.
- Lignite prices (0-300mm) increased by 33% to approximately $40/t over the past month.
- Domestic coal production decreased by 36% year-on-year to 1.6 million tonnes from January to May.
Uzbekistan has seen a divergence in thermal coal prices since liberalising its market and removing state-set price restrictions on June 1. Data from the Uzbek Commodity Exchange (Uzex) indicates that prices for coal grades intended for household consumption have remained stable, while those for power plant usage have shown mixed trends.
Under the new market-based system, thermal power plants and industrial buyers can procure coal through a "request for proposals" method or tenders, with prices determined by weighted averages on the exchange. Households and public institutions have a separate mechanism for securing deliveries, with producers selling to entrepreneurs via a dedicated trading platform.
Specific price data shows that D-grade thermal coal (20-60mm) for households hovered around $111.28/t, and SS-grade thermal coal (13mm) remained near $38/t, with no change since June 1. Utilities using D-grade thermal coal (0-300mm) also saw prices hold steady at $80.50/t. However, lignite (0-300mm) experienced a significant 33% price increase to approximately $40/t over the past month.
Uzbekistan's coal supply relies on two main reserves: the Angren coalfield, which yields high-ash, low-calorific value lignite, and the Shargun deposit, producing higher-quality bituminous coal. Local power plants typically use a blend from both regions as an alternative to imports.
Meanwhile, domestic coal production in Uzbekistan declined by 36% year-on-year to 1.6 million tonnes during January-May. The government plans to increase its coal output forecast to 11 million tonnes for the upcoming autumn-winter season. Coal imports, primarily via rail from Kyrgyzstan, increased by 48.4% year-on-year to 288,500 tonnes in the first quarter.