BAKU, Azerbaijan, July 29. Global coal trading volume in 2022 is expected to be slightly down from 2021 levels, as higher prices reduce import demand in price-sensitive markets, Trend reports via the latest update on the coal market from the International Energy Agency (IEA).
According to the agency, the rapid recovery of the global economy in 2021 led to a significant increase in demand for coal, which in many countries had to be met by increasing imports. International trade in thermal coal increased by 43 million tons (4.3-percent increase), and metallurgical coal - by 4 million tons (1.3 percent increase).
As the IEA expects, China’s coal imports are projected to decline by 18 percent in 2022. India has also reduced its coal imports, however, a slight year-on-year increase is expected. Meanwhile, “Russia is expected to experience the biggest drop in coal exports in 2022 as a result of international sanctions and the EU’s import ban”.
“High gas prices are expected continue to push up demand for coal imports, particularly in Europe and Northeast Asia, in 2021. However, the supply of coal with high calorific value is forecast to remain tight because of the difficulties other exporters face in compensating for the volumes that Russia will not supply due to bans and sanctions,” the report added.
“The underlying trends in global coal markets – increasing self-sufficiency in China and India, weak economic outlook, high import demand in Europe, and very tight supply for coal with high calorific value - are set to persist in 2023,” the agency noted.
---
Follow the author on Twitter: @mariiiakhm