Coal price index

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Coal price index

This post is a summary of the Coal price index developments since 2018. The price developments of coal are expressed as a price index over time in US$, converted at current FX rates at the time. Coal price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

Further information on the Coal price charts

What is coal

Coal is a fossil fuel that is formed from the remains of plants that lived and died millions of years ago. It is a black, solid substance that is composed mainly of carbon, along with small amounts of other elements, such as hydrogen, sulfur, and oxygen.

Coal is classified into four types: anthracite, bituminous, subbituminous, and lignite, based on the amount of carbon and other impurities it contains. Anthracite is the highest quality and contains the least amount of impurities, while lignite is the lowest quality and has the highest amount of impurities.

Coal is used as a fuel source for electricity generation, steel production, and a variety of other industrial processes. It is also used in the production of cement and as a source of heat for homes and businesses.

Coal is a nonrenewable resource, which means that it cannot be replaced once it has been used up. The use of coal as a fuel source has significant environmental impacts, including air pollution and greenhouse gas emissions, which contribute to climate change.

What types of coal are there

There are four main types of coal based on their carbon content, heating value, and other characteristics. These four types of coal are:

Anthracite

This is the highest quality coal, with the highest carbon content and heating value. It is usually black and shiny, and burns slowly with little smoke. Anthracite is often used for heating homes and other buildings, and is also used in the production of steel.

Bituminous

This is the most common type of coal, and is often called “soft coal.” It has a lower carbon content than anthracite, but is still relatively high in carbon. Bituminous coal is often used for electricity generation and industrial processes.

Subbituminous

This type of coal has a lower carbon content than bituminous coal, and is often called “brown coal.” It has a lower heating value than bituminous coal, but is still used for electricity generation.

Lignite

This is the lowest quality coal, with the lowest carbon content and heating value. It is often called “brown coal” and is used primarily for electricity generation. Lignite is soft and crumbly, and has a high moisture content.

What is Thermal coal

Thermal coal is a type of coal that is primarily used to generate electricity in power plants. It is also known as steam coal or thermal-grade coal. Thermal coal is typically bituminous or sub-bituminous coal with a relatively low sulfur content and a high heating value, making it a suitable fuel for power generation.

When burned, thermal coal releases energy in the form of heat, which is used to generate steam in power plants. The steam then drives turbines that generate electricity. Because of its low sulfur content, thermal coal produces fewer emissions of sulfur dioxide and other pollutants compared to other types of coal. However, it still emits carbon dioxide and other greenhouse gases, making it a significant contributor to climate change.

What is coking coal

Coke coal, also known as metallurgical coal, is a type of coal that is used in the production of steel. It is a high-quality bituminous coal with a low ash and sulfur content and a high carbon content.

To produce coke, coal is heated in a low-oxygen environment to drive off volatile compounds and leave behind a solid residue of carbon. This process, called coking, produces a hard, porous material that is used as a fuel and reducing agent in the production of iron and steel.

Coke coal is an essential ingredient in the steelmaking process. It reacts with iron ore and other materials in a blast furnace, reducing them to molten iron and producing carbon monoxide gas, which is used to fuel the furnace. The high carbon content of coke also helps to remove impurities from the iron, producing a higher-quality steel.

Further information on coal

• IMF.org source publication
• Wikipedia for general background notes

Anthracite coal information and prices

What is anthracite coal

Anthracite is a type of coal that is known for its high carbon content, low volatile matter, and high energy density. It is a hard, glossy, black coal that is sometimes referred to as “hard coal.” Anthracite coal is formed from the metamorphosis of bituminous coal over millions of years, under high pressure and temperature.

Anthracite coal has a high energy content and burns cleaner than other types of coal, making it a popular fuel for residential and commercial heating. It produces less ash and smoke than other types of coal, and its high carbon content makes it a good fuel for steelmaking and other industrial processes that require high temperatures.

Anthracite coal is primarily found in the United States, with significant reserves in Pennsylvania, West Virginia, and other states in the Appalachian region. It is also found in smaller quantities in other parts of the world, including China, Russia, and South Africa.

Due to its high cost and limited availability, anthracite coal is not as widely used as other types of coal, but it remains an important fuel source for certain applications, particularly in regions where it is abundant.

Which country produces the most anthracite

China is the world’s largest producer of anthracite coal. According to the United States Geological Survey (USGS), China produced approximately 510 million metric tons of anthracite coal in 2020, accounting for about 78% of the world’s total production. Russia is the second-largest producer of anthracite, followed by Ukraine, Vietnam, and South Africa. The United States also produces anthracite, but in much smaller quantities compared to China and other countries.

Anthracite market size information

The global anthracite market is a relatively small segment of the overall coal market, but it is a significant source of high-quality fuel for certain applications. According to a report by Market Research Future, the global anthracite market size was valued at USD 16.4 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 3.2% from 2021 to 2028.

The use of anthracite coal is primarily driven by demand for high-quality fuel for industrial applications such as steelmaking, as well as for residential and commercial heating. Anthracite coal is also used in water filtration and other specialized applications.

The largest producers of anthracite coal are Russia, China, and Ukraine, with significant reserves also found in the United States and other countries. The demand for anthracite coal is expected to remain stable in the coming years, driven by its high energy content and cleaner burning properties compared to other types of coal.

Overall, the global anthracite market is a relatively small but important segment of the coal industry, supplying high-quality fuel for certain specialized applications.

Anthracite, not agglomerated are the world’s 819th most traded product.

In 2020, the top exporters of Anthracite, not agglomerated were Russia ($1.81B), Australia ($671M), China ($239M), Indonesia ($132M), and Vietnam ($124M).

In 2020, the top importers of Anthracite, not agglomerated were Japan ($552M), South Korea ($464M), China ($421M), Vietnam ($328M), and India

Bituminous coal information and price chart

What is bituminous coal

Bituminous coal is a type of coal that falls under the category of soft coal. It is a dark brown to black coal that is commonly found in sedimentary rock layers. Bituminous coal is composed of about 60 to 80 percent carbon, with the rest being water, air, hydrogen, sulfur, and other impurities. It is classified as a low-grade fuel because of its relatively high sulfur content, but it is widely used for industrial and commercial applications due to its high energy content and abundance.

Bituminous coal is formed from the remains of plants that lived in swampy environments millions of years ago. Over time, the organic matter was buried and subjected to high temperatures and pressure, causing it to transform into coal. Bituminous coal is often mined in the United States, Russia, China, and Australia, among other countries. It is used to generate electricity, heat buildings, and as a fuel source in industrial processes such as steel production.

What is bituminous coal used for

Bituminous coal is used for a variety of purposes, including:

Electricity generation

Bituminous coal is a major source of fuel for power plants that generate electricity. It is burned to heat water, which produces steam to turn turbines that generate electricity.

Industrial processes

Bituminous coal is used as a fuel source in various industrial processes such as cement production, steel manufacturing, and papermaking.

Home heating

Bituminous coal can be burned in home heating systems to provide heat during the winter.

Transportation

Bituminous coal is used as a fuel source for trains, ships, and other transportation vehicles.

Briquettes and pellets

Bituminous coal can be compressed into briquettes or pellets for use as a fuel source for home heating and cooking.

Activated carbon

Bituminous coal is used to produce activated carbon, which is used in water purification, air filtration, and other applications.

Overall, bituminous coal is a versatile and widely used fuel source that has many important industrial and commercial applications.

Which country produces the most bituminous coal

There are several countries around the world that produce bituminous coal. According to the United States Geological Survey (USGS), the top five producers of bituminous coal in the world in 2020 were:

• China: 2,535 million metric tons
• United States – 207 million metric tons
• India – 177 million metric tons
• Australia – 157 million metric tons
• Indonesia – 138 million metric tons

Other significant producers of bituminous coal include Russia, South Africa, Colombia, and Kazakhstan.

Bituminous coal market size information

The global bituminous coal market is a significant part of the global energy industry. According to a report by Grand View Research, the global bituminous coal market size was valued at USD 102.7 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 1.5% from 2021 to 2028.

The Asia Pacific region is the largest consumer of bituminous coal, accounting for more than half of the global market share. China is the world’s largest producer and consumer of bituminous coal, followed by the United States, India, and Australia.

The use of bituminous coal is expected to continue to grow in developing countries where industrialization and urbanization are driving demand for energy. However, the market for bituminous coal is also subject to environmental and regulatory pressures, as concerns over air pollution and greenhouse gas emissions are leading to increased scrutiny of fossil fuel use.

According to https://oec.world/ :

Bituminous coal, not agglomerated are the world’s 27th most traded product.

In 2020, the top exporters of Bituminous coal, not agglomerated were Australia ($30.6B), Russia ($10.9B), United States ($6.36B), Indonesia ($4.62B), and South Africa ($3.77B).

In 2020, the top importers of Bituminous coal, not agglomerated were Japan ($13.1B), China ($11.7B), India ($8.98B), South Korea ($7.28B), and Chinese Taipei ($3.87B).

Sub-bituminous coal information and price chart

What is sub-bituminous coal

Subbituminous coal is a type of coal that falls between lignite and bituminous coal in terms of carbon content and energy density. It is a soft, brown coal that is typically found in sedimentary rock formations and is composed of about 50 to 60 percent carbon, with the rest being water, air, hydrogen, sulfur, and other impurities.

Subbituminous coal is formed from the same types of plant materials as bituminous coal, but it has not been subjected to as much heat and pressure over time. As a result, it has lower carbon content and energy density than bituminous coal but higher than lignite.

Subbituminous coal is primarily used for electricity generation, as it is abundant and relatively low-cost compared to other types of coal. It is often burned in power plants that are located near the source of the coal, as it has lower transportation costs than other types of coal.

The largest producers of subbituminous coal are the United States, Russia, and Australia, with significant reserves also found in other countries. The demand for subbituminous coal is expected to remain stable in the coming years, driven by its relatively low cost and abundance as a source of fuel for electricity generation.

What is subbituminous coal used for

Subbituminous coal is primarily used as a fuel for electricity generation due to its abundance and relatively low cost. It is typically burned in power plants to produce steam, which is then used to generate electricity through a turbine.

Subbituminous coal is particularly well-suited for use in power plants because it has low moisture content and burns more cleanly than lignite coal. It also has a higher heating value than lignite, meaning that it can produce more energy per unit of weight or volume.

In addition to its use in power generation, subbituminous coal is also used in certain industrial applications, such as cement production and paper manufacturing. However, these applications are less common than its use as a fuel for electricity generation.

The demand for subbituminous coal is expected to remain stable in the coming years, as it is a relatively low-cost source of fuel for power generation and is abundant in many parts of the world. However, the market for subbituminous coal may be subject to environmental and regulatory pressures, as concerns over air pollution and greenhouse gas emissions are leading to increased scrutiny of fossil fuel use.

Which country produces the most sub-bituminous coal

The largest producers of subbituminous coal in the world are the United States, Australia, and Indonesia. These three countries together account for the majority of global subbituminous coal production.

In the United States, subbituminous coal is primarily produced in the Powder River Basin, which spans parts of Wyoming and Montana. The Powder River Basin is the largest coal-producing region in the United States, and subbituminous coal accounts for the majority of its output.

Australia is also a significant producer of subbituminous coal, with large deposits located in the states of Queensland and New South Wales. Subbituminous coal is primarily used for electricity generation in Australia, where it is an important source of fuel for the country’s power grid.

Indonesia is another major producer of subbituminous coal, with large deposits located in the provinces of South Sumatra and East Kalimantan. The country’s subbituminous coal is primarily exported to countries such as China, India, and Japan for use in power generation.

Other countries that produce significant amounts of subbituminous coal include Russia, China, and Canada, although their production levels are lower than those of the United States, Australia, and Indonesia.

Sub-bituminous coal market size information

The global subbituminous coal market is a significant segment of the overall coal market, driven by its use as a fuel for electricity generation. According to a report by Market Research Future, the global subbituminous coal market size was valued at USD 152.6 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2021 to 2028.

The demand for subbituminous coal is primarily driven by its relatively low cost compared to other types of coal and its abundance in certain regions of the world, particularly the United States and Australia. Subbituminous coal is also preferred over lignite coal for power generation due to its higher energy content and lower moisture content, which leads to more efficient combustion and lower emissions.

The largest consumers of subbituminous coal are power generation utilities, particularly in countries such as the United States, China, and India. In addition to its use in electricity generation, subbituminous coal is also used in certain industrial applications, such as cement production.

Overall, the global subbituminous coal market is a significant segment of the coal industry, driven by its cost-effectiveness and abundance as a source of fuel for electricity generation. However, the market for subbituminous coal may be subject to environmental and regulatory pressures, as concerns over air pollution and greenhouse gas emissions are leading to increased scrutiny of fossil fuel use.

According to https://oec.world/ :

Coal except anthracite or bituminous, not agglomerate are the world’s 97th most traded product.

In 2020, the top exporters of Coal except anthracite or bituminous, not agglomerate were Indonesia ($10.9B), Australia ($5.17B), South Africa ($2.52B), Russia ($1.75B), and United States ($925M).

In 2020, the top importers of Coal except anthracite or bituminous, not agglomerate were India ($11.7B), China ($1.96B), Malaysia ($1.46B), Vietnam ($1.4B), and Philippines ($1.1B).

Lignite coal information and price chart

What is lignite coal

Lignite coal is a type of coal that is often referred to as “brown coal” due to its brownish-black color. It is the lowest quality and lowest rank of coal, with a carbon content of around 25-35%, making it less energy-dense than other types of coal. Lignite is formed from peat and is the result of a process of coalification that occurs at a lower temperature and pressure than the process that creates bituminous coal and anthracite.

Lignite is typically found in sedimentary basins and is often associated with layers of sandstone and shale. It is a soft and crumbly coal that has a high moisture content and is susceptible to spontaneous combustion when exposed to air.

Lignite coal is primarily used for electricity generation, particularly in countries where it is abundant, such as Germany, Russia, and China. It is often burned in power plants that are located near the source of the coal, as it has lower transportation costs than other types of coal. Lignite is also used in certain industrial applications, such as the production of fertilizer and synthetic natural gas.

Due to its low energy content and high emissions of pollutants, including carbon dioxide, sulfur dioxide, and particulate matter, lignite coal is considered to be one of the most polluting sources of energy. As a result, there is increasing pressure to phase out the use of lignite coal in favor of cleaner and more sustainable energy sources.

What is lignite coal used for

Lignite coal is primarily used for electricity generation due to its abundance and relatively low cost compared to other types of coal. It is often burned in power plants that are located near the source of the coal, as it has lower transportation costs than other types of coal.

Lignite is also used in certain industrial applications, such as the production of fertilizer and synthetic natural gas. In some countries, such as Germany, lignite is also used for district heating, where it is burned to generate heat for homes and businesses.

In addition to its use as a fuel source, lignite is also used in some cases as a raw material for the production of various chemicals, such as phenol and formaldehyde.

However, lignite coal is considered to be one of the most polluting sources of energy due to its low energy content and high emissions of pollutants, including carbon dioxide, sulfur dioxide, and particulate matter. As a result, there is increasing pressure to phase out the use of lignite coal in favor of cleaner and more sustainable energy sources.

Which country produces the most lignite coal

Lignite is a type of coal that is widely distributed around the world, and it is primarily found in countries that have large coal reserves. Some of the largest producers of lignite coal in the world include:

Germany

Germany is the largest producer of lignite coal, accounting for about one-third of the global production. Lignite is an important source of energy for Germany, and it is used for electricity generation and district heating.

Russia

Russia is the second-largest producer of lignite coal, and it is primarily used for electricity generation.

Turkey

Turkey is a major producer of lignite coal, and it is used primarily for electricity generation.

Australia

Australia is a significant producer of lignite coal, and it is primarily used for electricity generation and industrial applications.

United States

The United States is a significant producer of lignite coal, and it is primarily found in North Dakota, Texas, and Montana. Lignite is used for electricity generation and industrial applications.

Greece

Greece is a significant producer of lignite coal, and it is primarily used for electricity generation.

Other countries that produce significant amounts of lignite coal include China, India, Poland, and Czech Republic.

Overall, lignite coal is an important source of energy for many countries around the world, particularly in Europe, where it is used extensively for electricity generation. However, lignite coal is also a source of environmental concern due to its high carbon emissions and other pollutants, and there is increasing pressure to transition to cleaner and more sustainable energy sources.

Lignite coal market size information

The global lignite coal market is a significant segment of the overall coal market, driven by its use as a fuel for electricity generation. However, lignite coal represents a relatively small share of the global coal market, as it is a lower quality and lower rank coal compared to other types such as bituminous and subbituminous coal.

According to a report by Market Research Future, the global lignite coal market size was valued at USD 114.5 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 3.7% from 2021 to 2028. The demand for lignite coal is primarily driven by its abundance in certain regions of the world, particularly Europe, where it is used extensively for electricity generation. Germany, in particular, is a major producer and consumer of lignite coal, with lignite accounting for about 22% of the country’s electricity generation in 2020.

The largest consumers of lignite coal are power generation utilities, particularly in countries such as Germany, Turkey, and Russia. In addition to its use in electricity generation, lignite coal is also used in certain industrial applications, such as the production of fertilizer and synthetic natural gas.

According to https://oec.world/ :

Coal except anthracite or bituminous, not agglomerate are the world’s 97th most traded product.

In 2020, the top exporters of Coal except anthracite or bituminous, not agglomerate were Indonesia ($10.9B), Australia ($5.17B), South Africa ($2.52B), Russia ($1.75B), and United States ($925M).

In 2020, the top importers of Coal except anthracite or bituminous, not agglomerate were India ($11.7B), China ($1.96B), Malaysia ($1.46B), Vietnam ($1.4B), and Philippines ($1.1B).