BAKU, Azerbaijan, August 9. Global coal demand growth in the first half of 2023 is anticipated to have stood at approximately 1.5 percent, reaching around 4,665 million tons (Mt), Trend reports.
According to the data obtained from the International Energy Agency (IEA), this increase was supported by a 1-percent rise in power generation, and a 2-percent boost in non-power sectors. At the same time, China, India, and Indonesia exhibited ongoing uptrends, compensating for decreases in the US, the EU, and Japan.
The latter half of 2023 is expected to witness a reduction in global coal-fired power generation, the IEA says, which is going to be effectively negating the gains from the first half. Overall, the power sector's demand is projected to drop by 0.4 percent for the entire year, reaching approximately 5,597 Mt.
Meanwhile, non-power sectors are anticipated to maintain growth, culminating in a total of 2,791 Mt for the entirety of 2023. Consequently, the global coal demand is forecasted to remain relatively steady at around 8,388 Mt (+0.4 percent) in 2023.
As the agency pointed out, the trajectory of coal demand for this year hinges on weather conditions and the economic performance of major coal-consuming nations. Following three exceptional years marked by the COVID-19-induced shock in 2020, the robust post-pandemic recovery in 2021, and the unprecedented global energy crisis triggered by war in Ukraine in 2022, markets have returned to more familiar patterns in 2023.
Furthermore, declines in the US and the EU persist, attributed to the power sector due to a combination of subdued electricity demand and the expansion of renewable energy sources. Additionally, in the US, the prevalence of inexpensive natural gas is also influencing the decline in coal demand.