Market Trends of Coal Trading Industry
Importer and Exporter to Maintain an Equal Share in the Market
- The coal trading market is primarily operated by importers and exporters that enable them to meet the demand for coal in various regions of the world. Around 12 significant importers and 12 major exporters are present that run the coal trading market.
- According to the Energy Institute, the total global coal imports were 32.47 exajoules in 2022, with a growth of 3.5% from the previous year.
- In 2022, China, India, Japan, and Europe are the major coal importers, while Russia, Australia, and Indonesia are the major exporters.
- Further, in April 2023, Coal trader PT Andamas Global Energi (AGE), a subsidiary of the Andamas Group, announced plans to double its coal trading volume to 2 million tonnes in 2025, with coal to be sourced primarily from mines located in Lahat Regency, South Kalimantan Province, Indonesia.
- With the rising demand for coal, especially in the Asia-Pacific region, it is expected that, by 2025, the global market of coal is likely to be nearly 5,000 megatons of coal equivalent (mice). Europe and North America are expected to reduce coal consumption. Still, Asia-Pacific is expected to remain dominated by coal as a significant source of power owing to its large population and increasing electricity demand.
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Asia-Pacific is Dominating the Market
- The Asia-Pacific region is the major coal trader worldwide that continues to trade a significant percentage of coal from the last few decades. With major coal-dependent countries, Asia-Pacific has the highest rate of imported market share.
- Electricity generation from coal, the major sector of coal demand in China and India, makes the region the most dominating market in the world.
- China remains the world's highest coal importer, with a net volume of 5.83 Exajoules in 2022, a decrease of 9.2% from the previous year. Further, Indonesia was the world's largest exporter of thermal coal increased its exports from 8.16 exajoule in 2012 to 9.19 exajoules in 2022.
- Moreover. the region significantly utilizes coal as the primary fuel for electricity generation. However, several countries in the region have pledged to retire coal power plants and become carbon neutral. However, as the demand for electricity rises, the nations are still using coal for power generation. The process of transition will take time to shift.
- As of January 2023, China has the highest number of operating coal thermal power plants in the world. Till January 2023, China has around 3092 units of operating coal thermal power plants, 499 under-construction coal power plants, and 112 announced coal power plants. Hence, such a trend would propel the coal trading market in the upcoming years.
- Thus, the Asia Pacific region will likely witness significant growth in the coal trading market during the forecast period.
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