Global demand and use of coal have reached their highest levels in history, with a record 8.77 billion tonnes expected this year, according to the International Energy Agency (IEA).
China’s power sector plays a particularly significant role in the global coal market, as one-third of the world’s consumption comes from power plants in the country.
Coal demand in China is expected to grow by 1% in 2024, reaching 4.9 billion tonnes, while demand in India is projected to rise by over 5%, hitting 1.3 billion tonnes, the IEA estimates.
In the EU, demand has decreased by 12% this year, and in the US, it has fallen by 5%.
Additionally, coal demand continues to rise in some developing economies where the need for electricity is surging alongside economic and population growth, such as India, Indonesia, and Vietnam. In these economies, growth is primarily driven by demand from the energy sector, though industrial use is also increasing.
Coal prices today remain 50% higher than the average recorded between 2017 and 2019. Coal production reached an all-time high in 2024, though growth is expected to stabilize by 2027.
International coal trade is also expected to hit a record 1.55 billion tonnes in 2024. According to the report, Asia remains the hub of international coal trade, with all the largest importing nations located in the region, including China, India, Japan, South Korea, and Vietnam, while the largest exporters are Indonesia and Australia.
