Coal Information: Overview

With the global economy slowing down and the widespread objective of having less carbon-intensive power generation in the face of pollution and environmental concerns, coal1 consumption fell in 20192. The depth and combination of those dynamics in the many economies of the world were different and consequently the coal market reacted differently: major Asian economies such as China4 and Indonesia increased their coal consumption whilst the United States, the European Union5 and India decreased their consumption.

Total world coal production increased by 1.5% in 2019, half the growth rate of the previous years.

Asia produced what Europe and US did not. The extra Chinese production equalled the drop in EU+US production.

China, the world’s biggest producer, remains at 4% annual growth rate, at 3,693 Mt in 2019.

India reduced production for the first time this century and only for the second in history. In 2019, production in India amounted to 769 Mt, 0.9% less than in the previous year, due mainly to a decrease in coal-fired power generation impacted by higher hydro generation.

Indonesia continues ramping up its production, +12.4% in 2019, the highest growth rate since 2016, when it returned to positive year on year changes

The United States continues the falling production trend that started at the beginning of the century, reaching 640 Mt in 2019, the lowest level seen in four decades.

The European Union also saw its deepest decrease in coal production ever in 2019, down by 68 Mt or 15.4%. The main actors of this are Germany, Poland and Greece, with year on year falls of -38, -10 and -9 Mt respectively. Furthermore, Spain stopped its coal production in 2019.

Coal consumption decreased by 1.2% worldwide in 2019.

The EU and US made the major year-on-year change, which offset the growth in China and Indonesia. India slightly decreased the coal consumption.

China continues to be the major consumer of coal worldwide, with its 2,866 mtce comprising 53.0% of the global share. India follows in second place with 585 mtce, 0.4% less than last year. The United States and the European Union are the leaders of the coal phase-out; they both set historical minimum consumption in 2019 but are still the 3^rd and 4^th global coal consumers in the world, with 397 mtce and 253 mtce, respectively. These four markets account for three quarters of the global coal consumption. Indonesia’s coal consumption hit a historical maximum in 2019 at 115 mtce.

The input of coal for electricity and heat generation increased in 2018 compared to 2017 by 3.3% or 166 Mt. In contrast, the overall industrial sector, and namely the iron & steel industry, consumed less coal than in the previous year. Regarding the residential, commercial and public services sector, its share on the total consumption remained minor, 2.5%.

Despite more coal being used in the electricity and heat generation sector in absolute terms, the share of coal-fired generation in the power mix is decreasing in several economies, namely in the United States and most of the European countries, but also in China.

Coal is also essential for the iron and steel industry and its use has increased substantially during the last 30 years, driven primarily by increased production in China, although a slight decline can be observed starting in 2013.