CoalMarketUpdateJuly2023TheIEAexaminesthefullspectrumofenergyissuesincludingoil,gasandcoalsupplyanddemand,renewableenergytechnologies,electricitymarkets,energyefficiency,accesstoenergy,demandsidemanagementandmuchmore.Throughitswork,theIEAadvocatespoliciesthatwillenhancethereliability,affordabilityandsustainabilityofenergyinits31membercountries,13associationcountriesandbeyond.Thispublicationandanymapincludedhereinarewithoutprejudicetothestatusoforsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofanyterritory,cityorarea.Source:IEA.InternationalEnergyAgencyWebsite:www.iea.orgIEAmembercountries:AustraliaAustriaBelgiumCanadaCzechRepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNewZealandNorwayPolandPortugalSlovakRepublicSpainSwedenSwitzerlandRepublicofTürkiyeUnitedKingdomUnitedStatesTheEuropeanCommissionalsoparticipatesintheworkoftheIEAIEAassociationcountries:ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouthAfricaThailandUkraineINTERNATIONALENERGYAGENCYCoalMarketUpdateAbstractJuly2023PAGE|3IEA.CCBY4.0.AbstractCoalmarkets,likethoseforoilandnaturalgas,haveexperiencedaturbulentthreeyearsasaresultofthepandemicandRussia’sinvasionofUkraine,whichtriggeredthefirsttrulyglobalenergycrisis.In2023,coalmarketshavesofarbeenlessvolatile,thoughmoreturmoilcouldlieahead.ThisCoalMarketUpdate–whichprovidesthelatestanalysisofcoaldemand,production,tradeandprices–findsthatcoaldemandandsupplyreachedanall-timehighin2022,confirmingpreviousforecasts.Italsoprovidespreliminaryestimatesforthefirsthalfof2023andoutlooksforfull-year2023and2024,basedonrecenttrendsandforecastsforeconomicgrowthacrossregions,aswellasfuelandforwardcurves.Giventhatcoalisthesinglelargestsourceofcarbondioxide(CO2)emissionsandthatglobalcoalconsumptionhasmoreorlessplateauedforadecade,thekeyquestioniswhenastructuraldeclineincoaldemandwillbegin.TheanalysesanddatainthisCoalMarketUpdateinformthoselookingtoanswerthisquestion,whichhasmajorimplicationsforeffortstoreachinternationalenergyandclimategoals.CoalMarketUpdateDemandJuly2023PAGE|4IEA.CCBY4.0.DemandGlobalcoaldemandreachedanewall-timehighin2022AsprojectedintheCoal2022reportlastDecember,globalcoaldemandreachedanewall-timehighin2022,risingabove8.3billiontonnes(bt).Itrosedespiteaweakerglobaleconomy,mainlydrivenbybeingmorereadilyavailableandrelativelycheaperthangasinmanypartsoftheworld.Theturntocoal-firedgenerationwasfurthersupportedbyoverallweaknuclearpowerandhydropowerproduction,contributingtoanewrecordglobalhighof10440TWhbeinggeneratedfromcoal,representing36%oftheworld’selectricitygeneration,uponepercentagepointcomparedto2021.Inaddition,final2021demandnumbersforcoalwererevisedupward,particularlyinChina,meaningthat2022’sincreaseddemandwascomingoffanevenhigherbase.InChina,coaldemandgrewby4.6%in2022toanewall-timehighof4519Mt.Demandwashigherthanexpectedinlastyear’sCoalReportfortworeasons.First,thecalorificvalue(CV)ofcoalproducedinChinawaslower,resultinginhigher-than-expectedvolumes.Second,morecoalthanexpectedwasgasifiedtoproducesyntheticliquidfuels,plasticsandfertilizers.Asaresult,weestimatethatcoaldemandfornon-powerusesgrewby7%,despiteeconomicgrowthofonly3%andasluggishreal-estatesector.India’seconomyperformedverywellin2022withgrowthof6.9%,resultingin...