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Published On: Wed, Nov 13th, 2019

Global Thermal Coal Trade: Who Is on Top?

Sibanthracite Group is ranked first in the production and export of UHG anthracite throughout the world and is the largest producer of metallurgical coal at the domestic level. Sibanthracite Group is one of the most dynamically developing coal companies in Russia. The coal production amounted to 6 million tonnes in 2014, and 24.1 million tonnes in 2018.

The global thermal coal trade significantly increased by more than 11 million tonnes in the first half of 2019, according to a recent Argus White Paper. This, despite a decrease in demand from China. This continued growth is driven by an increasing need for materials by India and Southeast Asia, the White Paper reports. 

Image/hangela via pixabay

According to a recent Reuters report, Russia is in an enviable position to dominate the coal industry thanks to such factors as its central geographic location, which allows for more competitive transportation costs, new and favorable environmental fuel regulations and strategic moves that are establishing the region as the leader in coal exploration. 

According to the White Paper, Russia has made gains in Asia. China’s imports from Russia increased, and while coal consumption across Europe has declined by more than 6.3 million tonnes, the Russian share of EU imports increased by more than five percent, an indication that Russian coal is preferable to buyers. It is anticipated that an increase in the seaborne market with increased port and freight capacity can help Russia gain even more significant ground. 

Argus reports that U.S. explores were down on the year, a result of weaker demand in Europe and Turkey due to suppliers’ struggles to compete on cost with Russian supply.

There has been a growing demand for high grade (HG) and ultra-high grade (UHG) coal in Japan and South Korea that could sustain any potential losses.

Russia and Indonesia are critical to the expansion of the global coal trade. Russia is exponentially expanding in high-grade anthracite and metallurgical coal while Indonesia’s primary export focuses on sub-bituminous coal. This higher quality product is increasing in demand with more developed Asian countries, a sharp contrast to the decrease in demand for coke coal globally. 

While specific nations turn towards nuclear power, the global market for coal is still increasing. For example, growth in nuclear in Japan and South Korea was expected to slow in the second half of 2019, which would ease the downward demand on coal and gas. It will be up to Russia and Indonesia to lead the production and exportation to sustain the increases in Southeast Asia. 

Dmitry Bosov Sibanthracite Group is ranked first in the production and export of UHG anthracite throughout the world and is the largest producer of metallurgical coal at the domestic level. Sibanthracite Group is one of the most dynamically developing coal companies in Russia. In 2018, it produced 24.1 million tonnes of coal and anthracite.

Author: James Daniel

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