Global Coal Market Price

In: Business and Management

Submitted By hermanjoseph
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The Coal Resource: A Comprehensive Overview of Coal

13

SECTION THREE

THE GLOBAL COAL MARKET
>> Coal is a global industry, with coal mined commercially in over 50 countries and coal used in over 70. >>

Major Coal Importers, 2003 (Mt) Japan Republic of Korea Chinese Taipei Germany UK Russia India USA Netherlands Spain 162 72 54 35 32 24 24 23 22 22

The world currently consumes over 4050 Mt of coal. Coal is used by a variety of sectors – including power generation, iron and steel production, cement manufacturing and as a liquid fuel. The majority of coal is either utilised in power generation – steam coal or lignite – or iron and steel production – coking coal.

Coal Consumption Coal plays a vital role in power generation and this role is set to continue. Coal currently fuels 39% of the world’s electricity and this proportion is expected to remain at similar levels over the next 30 years.
Consumption of steam coal is projected to grow by 1.5% per year over the period 20022030. Lignite, also used in power generation, will grow by 1% per year. Demand for coking coal in iron and steel production is set to increase by 0.9% per year over this period. The biggest market for coal is Asia, which currently accounts for 54% of global coal consumption – although China is responsible for a significant proportion of this. Many countries do not have natural energy resources sufficient to cover their energy needs, and therefore need to import energy to help meet their requirements. Japan, Chinese Taipei and Korea, for example, import significant quantities of steam coal for electricity generation and coking coal for steel production. It is not just a lack of indigenous coal supplies that prompts countries to import coal but also the importance of obtaining specific types of coal. Major coal producers such as China, the

Source: IEA Coal Information 2004

Coal…...

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