Coal market in MERCOSUR

Earlier Report Observations

Coal market volume in MERCOSUR declined from 35 908 thousand tonnes in 2018 to 28 226 thousand tonnes in 2020. This contraction was driven by the COVID-19 pandemic in 2020, which reduced industrial activity and demand for coal across the region.

Market volume rebounded sharply to 36 199 thousand tonnes in 2021, surpassing pre-pandemic levels, but then fell to 31 738 thousand tonnes in 2022, indicating significant year-to-year volatility in regional consumption.

In 2024, global coal demand reached a historic peak, influenced by rapid industrialization in Latin America, stricter environmental regulations for water treatment and emissions control, and increased international trade activity within MERCOSUR, including logistics infrastructure developments.

Production coal in MERCOSUR

In kind, 2017-2020, K t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

MERCOSUR's coal production declined for the second consecutive year. In 2020, 9 171 K t of coal were produced, marking a 3.5% decrease compared to 2019. Between 2017 and 2020, production fell by 10.1%, which translates to an annualized decline of 3.5%. The highest production level was recorded in 2018 at 10 523 K t. The largest annual decrease occurred in 2019, with a drop of 9.7%, while the largest increase was in 2018 at 3.2%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

Exports coal from MERCOSUR

Exports in kind, K t

Market performance showed noticeable fluctuations during the period. Exports reached their lowest point in 2019 and peaked in 2020, with a 3.9-fold difference between these years. In 2020, MERCOSUR's coal export volume amounted to 17 K t, representing a sharp increase of 287.3% compared to the previous year. The minimum value was recorded in 2019 at 4 K t, with the largest decline that year at 20.7%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, the Netherlands and Norway consistently led as the top markets for MERCOSUR's coal exports in kind, together accounting for 64.1% of total export flows.

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

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

Exports in value, M $ US

After two years of growth, MERCOSUR's coal exports in value terms declined. In 2020, exports reached 1 M $ US, corresponding to a 40.0% decrease compared to the previous year. Between 2017 and 2020, exports fell by 17.9%, equating to an annualized decline of 6.4%. The maximum value was recorded in 2019 at 1 M $ US, with the largest increase occurring in 2018 at 17.0%.

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

During 2017–2020, Norway (12.8% of exports in value terms), the Netherlands (10.6% of exports in value terms), and Bolivia (3.5% of exports in value terms) were significant buyers of coal from MERCOSUR. However, their combined share reached only 26.9% of total exports in value terms, with the remaining 73.1% distributed among numerous other partners.

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

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

Imports coal to MERCOSUR

Imports in kind, K t

Cross-border shipments of coal to MERCOSUR declined for the second consecutive year. In 2020, MERCOSUR imported a total of 19 072 K t of coal, marking a substantial decrease of 12.7% compared to the previous year. Between 2017 and 2020, imports fell by 24.1%, which corresponds to an annualized decline of 8.8%. The maximum value was recorded in 2018 at 25 390 K t. The largest annual decrease occurred in 2019 at 14.0%, while the largest increase was in 2018 at 1.0%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, the United States (32.5% of imports in kind), Colombia (23.5% of imports in kind), and Australia (21.6% of imports in kind) consistently remained the main sources for MERCOSUR's coal imports, together accounting for 77.6% of total import flows.

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

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

Imports in value, M $ US

Coal imports to MERCOSUR in value terms declined for the second consecutive year. In 2020, MERCOSUR imported a total of value_last_year M $ US of coal, marking a reduction of 40.5% compared to the previous year. Over the period 2017-2020, imports decreased by 49.6%, with a compound annual growth rate (CAGR) of -20.4%. The maximum value was recorded in 2018 at 3 963 M $ US, with the largest increase that year at 2.3%.

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

From 2017 to 2020, the United States (36.7% of imports in value terms), Australia (26.5% of imports in value terms), and Colombia (15.1% of imports in value terms) formed the main cluster of markets for MERCOSUR's coal imports in value terms, with a combined share of 78.2% of total import flows.

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

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