This report analyzes the demand and supply dynamics of coal in the Australian market, focusing on the impact of these factors on coal prices. The study highlights the influence of China's demand for coal on the Australian market, noting that a slowdown in Chinese demand can lead to a decline in coal prices. The report examines the effects of government policies, such as infrastructure spending cuts and environmental regulations, on coal demand. It uses demand and supply theory to illustrate how changes in demand affect market equilibrium, leading to price fluctuations. The analysis includes a visual representation of demand and supply curves, along with references to relevant literature. The report concludes that demand-side factors, particularly from China, are major drivers of coal price declines, suggesting the need for government intervention to support the industry. The report emphasizes the importance of understanding the interplay of supply, demand, and external factors in determining coal prices.