Coal market in CIS

Earlier Report Observations

In 2018, the CIS coal market volume reached 630.8 million tons, supported by growing demand in the Asia-Pacific region and ongoing modernization of production capacities. However, over the next two years, the market contracted to 309.2 million tons by 2020, as prolonged periods of low prices created risks for developing new deposits and restrained investment.

From 2021, the market began to recover, reaching 362.1 million tons in 2022. This growth was driven by increased activity from major coal companies like SUEK and Kuzbassrazrezugol, as well as a reorientation of export flows to China and India following EU sanctions on Russian coal. Additionally, the commissioning of the second stage of the Vanino coal transshipment complex doubled its capacity to 24 million tons per year, enhancing logistics.

In 2023-2024, the continued impact of sanctions and issues with railway tariffs led to reduced export potential and sustained losses for coal companies. Meanwhile, brown coal (lignite) production increased, partially offsetting the decline in hard coal extraction.

Production coal in CIS

In kind, 2017-2020, M t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

Coal production in the CIS declined for the second consecutive year. In 2020, CIS countries produced 516.3 million tonnes of coal, marking a moderate decrease of 7.5% compared to 2019. The largest decline occurred in 2019, with a drop of 33.3%, while the largest increase was recorded in 2018 at 59.3%. Production peaked in 2018 at 837.1 million tonnes.

Annual dynamics of production in CIS in kind, 2017-2020, M t

In value, 2017-2020, M $ US

There were noticeable fluctuations in market performance during this period. Coal production in the CIS was valued at 31 779 million US dollars in 2020, representing a significant drop of 27.2% compared to 2019. The largest decline occurred in 2019, with a decrease of 38.4%, while the largest increase was recorded in 2018 at 83.0%. Production reached its highest value in 2018 at 70 933 million US dollars, and from this peak to the trough in 2020, production changed by a factor of 2.2.

Annual dynamics of production in CIS in value, 2017-2020, M $ US

Exports coal from CIS

Exports in kind, M t

After a two-year advance, coal deliveries from the CIS declined. In 2020, export volume amounted to 217.9 million tonnes, reflecting a slight drop of 1.2% compared to 2019. The largest increase was recorded in 2018 at 9.6%, and exports peaked in 2019 at 220.6 million tonnes. Between 2017 and 2020, exports increased by 11.4%, equating to an annualized growth rate of 3.7%.

Annual dynamics of product's exports from CIS in kind, 2017-2020, M t

The partner structure of exports in kind from 2017 to 2020 remained fragmented. China accounted for 13.1% of exports in kind, South Korea for 11.6%, and Japan for 8.2%, with these three countries together representing only 32.9% of total flows. No single country achieved a dominant share during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from CIS in kind, 2017-2020

Exports in value, M $ US

Coal exports in the CIS declined for the second consecutive year. In 2020, CIS countries exported 13 408 million US dollars of coal, indicating a strong reduction of 22.3% over the past year. The largest increase was recorded in 2018 at 25.9%, and exports reached their maximum value in 2018 at 18 175 million US dollars. Over the period from 2017 to 2020, exports decreased by 7.1%, with a compound annual growth rate of -2.4%.

Annual dynamics of product's exports from CIS in value, 2017-2020, M $ US

From 2017 to 2020, exports in value terms of coal from the CIS were spread across many countries. South Korea accounted for 14.2% of exports in value terms, China for 13.5%, and Japan for 10.7%, with these three countries jointly representing only 38.5% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from CIS in value, 2017-2020

Imports coal to CIS

Imports in kind, M t

CIS coal import volume increased for the third consecutive year. In 2020, CIS countries imported 10.7 million tonnes of coal, which is 29.1% more year-over-year. Between 2017 and 2020, imports increased by 53.7%, equating to an annualized growth rate of 15.4%.

Annual dynamics of product's imports to CIS in kind, 2017-2020, M t

From 2017 to 2020, Ukraine consistently occupied the leading position in imports in kind of coal to the CIS, accounting for 10.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to CIS in kind, 2017-2020

Imports in value, M $ US

After a two-year rise, foreign coal supplies to the CIS declined. In 2020, CIS countries imported 643 million US dollars of coal, corresponding to a decrease of 21.8% year-over-year. The largest increase was recorded in 2019 at 17.0%, and imports peaked in 2019 at 821 million US dollars.

Annual dynamics of product's imports to CIS in value, 2017-2020, M $ US

In the period from 2017 to 2020, Ukraine and Colombia led the ranking of suppliers of coal to the CIS, with a joint share of 19.7% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to CIS in value, 2017-2020