Global Coal Market: Country Overview; Recent Events; Value Chain Analysis; Production Process; Price Analysis; Indicator Analysis; Market Dynamics: Drivers & Constraints, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Key Factors Influencing the Quotation; Key Supplier Analysis, 2024-2032

Coal Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices

The global coal market reached a value of about 7,450 MMT in 2021. The industry is projected to grow at a CAGR of around 4.2% in the forecast period of 2022-2027 to reach a value of 9140 MMT by 2027.

The coal industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. Organisations and sole traders perform mining activities and sell all types of coal. These companies are also engaged in developing mining sites and improving the quality of coal. The key demand indicator in the industry report is the highest category spender by region — Asia Pacific.

Industry Definition and Segmentation

Brownish-black or black colour combustible sedimentary rock that has a high quantity of carbon and hydrocarbons is called coal. The force and heat break plants that are layered by dirt and rocks for over millions of years to form coal. Coal is a non-renewable source of energy and it takes millions of years for coal to develop and take its form. The energy in coal comes from the plants that existed in swampy forests for hundreds and millions of years. Coal is categorised into four main types: bituminous, subbituminous, anthracite, and lignite. The quality of coal depends on the type and the measure of carbon in the coal along with the amount of heat energy the coal is able to generate. The global coal industry report comprises segments based on its type (bituminous, sub-bituminous, lignite, and anthracite), end-user (electricity, steel, cement, and others), and regions (North America, Western Europe, Eastern Europe, Asia Pacific, South America, and the Middle East and Africa).

Asia Pacific Region is Driving the Growth of the Industry

Asia Pacific region uses coal expansively in its thermal power stations in order to fulfil the demand raised by several sectors like, transport, residential, industry, commercial, and public units. Due to the increasing demand for electricity in the region, coal power plants are anticipated to be a substantial consumer of coal. It is projected that Asia Pacific region will consume around 4,400 mega tonnes of coal by 2040, with maximum demand coming from power industry. Because of the country being the global leader on the basis of total number of coal-fired power plants, China is estimated to be the biggest and fastest growing market. Furthermore, the rising segment of coal to generate power in some countries is likely to drive the coal market. There are about twenty countries that are moving themselves towards using coal for power production, including nine in Africa, three in Central America, two in the Middle East and three in Asia. Similarly, a considerable increase in coal usage is also expected in Vietnam, the Philippines, and Malaysia. Owing to its abundance of local reserves and low cost, coal is continuing to be in demand, used for power generation across the globe.

Nevertheless, there are various power producing companies that are now progressively moving towards utilising substitute sources of energy such as natural gas, renewables, and nuclear power to generate clean and sustainable electricity. In addition to this less cost incurred in the installation of renewable sources of energy is also attracting companies to move towards these sources of power generation. Such factors are acting as a constraint in the further growth of coal market.

Best Procurement Practices

The global coal industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed coal utilising regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

When the plant matter is immersed in wetland environments and is exposed to the ecological forces of heat and pressure for a period of millions of years a substance is formed called Coal. Coal comes in broad variation in terms of its properties and is classified into four major types or grades based on its increasing carbon and energy content – lignite, sub-bituminous, bituminous, and anthracite. The coal is derived from mines, that is either done through underground or surface mining. There are two predominant techniques of coal mining underground and longwall mining that are performed by using powerful mining machines. The other methods of mining coal are strip, culm bank and surface. In the strip-mining coal is mined when they are located close to the surface. This technique is dependent on very large machinery and needs few numbers of workers.

The Increased Use in the Electrical Power Generation Industry to Further Drive the Procurement of Coal

The most important role of coal mined by Global Coal Mining industry is its utilisation in the global electricity generation industries and steel producing markets. Even though there are concerns over environmental related issues caused by coal mining and coal-based power generation, coal continues as the most popular source of fuel with several countries still heavily dependent on it for the supply of electricity. The electrical power generation industry uses coal on a large scale and is the primary end-user of coal as a form of fuel. The coal-fired power fleet units use subcritical boiler methodology as the main technology that has about 30% efficiencies and its installation is comparatively easy and low in cost.

The major zones in the industry are North America, Western Europe, Eastern Europe, Asia Pacific, South America, and the Middle East and Africa with Asia Pacific leading the market.

Key Industry Players Mentioned in the Coal Industry Report

• China Shenhua Energy Company Limited
• China Coal Energy Co., Ltd.
• Coal India Limited
• Yanzhou Coal Mining Company Limited
• BHP
• Glencore

Market Landscape

The largest segment of the coal market divided by type of coal is the bituminous coal market that accounted for 53.8% of the total market in 2020. Owing to the evolution in geosciences the demand for bituminous coal has risen at a very high rate globally. The important reason behind the increased popularity of this soft coal is that it is found at extensively across various regions. Moreover, the bituminous coal is also commonly used in cooking and hence has become a remarkable driver in the growth of demand in the international market. Furthermore, bituminous coal is also being used comprehensively by iron and steel industry. With the need for expanding the production of steel, the utilisation of bituminous coal has also increased in this industry. Among the end-use industries of coal, the electricity market is the biggest segment, that held about 54.5% of the total market share in 2020.

Key Initiatives by Companies

• In Jun 2021, Glencore completely procured the Cerrejón thermal coal mine for around USD 588 million in the middle of a rise in the demand for coal and its record-high prices.
• In Nov 2021, Stanmore, which is primarily held by Singapore-listed Golden Energy and Resources Ltd (GOLD.SI), consented to purchase BHP's 80% share in BHP Mitsui Coal, which holds and manages two open-cut metallurgical coal mines in the Bowen Basin.