Coal market & pricing
Coal is a global industry, with coal mined commercially in over 50 countries and used in over 70. Coal is readily available from a wide variety of sources in a well-supplied worldwide market.
Coal can be transported to demand centres quickly, safely and easily by ship and rail. A large number of suppliers are active in the international coal market, ensuring a competitive and efficient market. Coal markets today are very dynamic: a variety of qualities are traded, new price indexes have been created for different qualities in different regions and an increasing amount of paper trading is taking place.
Coal trade
Coal is traded all over the world, with coal shipped huge distances by sea to reach markets. Overall international trade in coal reached 1333.5 Mt in 2016; while this is a significant amount of coal it accounts for about 18% of total coal consumed. Most coal is used in the country in which it is produced.
Transportation costs account for a large share of the total delivered price of coal.
Based on information from the International Energy Agency, since 2000 global coal trade has increased by 105% .
IN SUMMARY:
- Coal trade
- Coal transportation
- Top coal exporters & importers
- Pricing
- Coal market news
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Coal is likely to remain the most affordable fuel for power generation in many developing and industrialised countries for decades.
ASEAN's Energy Equation
Coal transportation
The way that coal is transported to where it will be used depends on the distance to be covered. Coal transportation is generally carried out by conveyor or truck over short distances. Trains and barges are used for longer distances within domestic markets, or alternatively coal can be mixed with water to form a coal slurry and transported through a pipeline.
Top coal exporters & importers
Top coal exporters (2016)
| Total of which | Steam | Coking | |
|---|---|---|---|
| Australia | 389 Mt | 201 Mt | 188 Mt |
| Indonesia | 370 Mt | 369 Mt | 1 Mt |
| Russia | 171 Mt | 149 Mt | 22 Mt |
| Colombia | 83 Mt | 82 Mt | 1 Mt |
| South Africa | 76 Mt | 75 Mt | 1 Mt |
Source: IEA 2017
Top coal importers (2016)
| Total of which | Steam | Coking | |
|---|---|---|---|
| PR China | 256 Mt | 197 Mt | 59 Mt |
| India | 200 Mt | 152 Mt | 48 Mt |
| Japan | 189 Mt | 138 Mt | 51 Mt |
| South Korea | 134 Mt | 99 Mt | 35 Mt |
| Chinese Taipei | 66 Mt | 59Mt | 7 Mt |
Source: IEA 2017
Pricing
Coal pricing
Coal prices have historically been lower and more stable than oil and gas prices. Coal is likely to remain the most affordable fuel for power generation in many developing and industrialised countries for decades. In countries with energy intensive industries, the impact of fuel and electricity price increases is compounded. High prices can lead to a loss of competitive advantage and in prolonged cases, loss of the industry altogether. Countries with access to indigenous energy supplies, or to affordable fuels from a well-supplied world market, can avoid many of these negative impacts, enabling further economic development and growth.
Coal market & pricing enquiries
The World Coal Association does not provide information on coal pricing. We are unable to supply pricing information, market forecasts or advice on where to buy and sell coal because of our ‘Competition and Compliance’ guidelines. Please direct enquiries on these areas to the companies and organisations such as:
