Coal market in Mexico

Earlier Report Observations

The Mexican coal market volume expanded to 15 466 thousand metric tons in 2019, driven largely by a surge in imports. This growth occurred as the legal foundation for the Emissions Trading System (SCE) was established, requiring identified companies to reduce emissions through efficiency or carbon credit purchases. The pilot phase of the SCE began in January 2020, creating regulatory pressure on coal consumption due to its high carbon intensity.

Market volume then fell sharply to 10 135 thousand metric tons in 2020 and further to 7 009 thousand metric tons in 2021. During this period, the state-owned utility CFE purchased 2 million metric tons of coal to support small producers, providing some demand support. By 2022, the market declined modestly to 6 790 thousand metric tons, even as CFE reported a 61% increase in coal-fired power generation, suggesting that higher generation did not translate into increased coal consumption, possibly due to efficiency gains or stock drawdowns.

The mandatory carbon credit market officially started in 2023, though operational guidelines were lacking. In 2024, the launch of the mandatory carbon market was delayed, and CFE continued to pressure for more coal purchases to maintain coal's share in the power mix. The 2023 official Mexican standard NOM-163 established CO2 emission limits for new vehicles, reflecting ongoing regulatory pressure on fossil fuels.

Production coal in Mexico

In kind, 2018-2021, K t

From 2018 to 2021, Mexico ranked 29th globally in coal production volume.

Top producers of coal, 2018-2021

World map of production of coal, 2018-2021

Mexico's coal production declined for the third consecutive year. In 2021, the country produced 6 648 K t of coal, marking a 31.5% year-over-year contraction. Between 2018 and 2021, production decreased by 44.7%, which translates to an annualized decline rate of 17.9%.

Annual dynamics of production in Mexico in kind, 2018-2021, K t

Exports coal from Mexico

Exports in kind, K t

In 2020, coal deliveries from Mexico reached 4 K t, showing little change compared to the previous year. Between 2018 and 2020, exports increased by 12%, equating to an annualized growth rate of 3.9%.

Annual dynamics of product's exports from Mexico in kind, 2018-2021, K t

Throughout 2018–2021, Mexico's coal exports in kind were highly concentrated, with Guatemala and El Salvador jointly accounting for 100.0% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Mexico in kind, 2018-2021

Exports in value, M $ US

In 2020, coal volumes leaving Mexico reached 0.8 M $ US, with minimal change compared to 2019. Between 2018 and 2020, exports increased by 27.1%, representing an annualized growth rate of 8.3%.

Annual dynamics of product's exports from Mexico in value, 2018-2021, M $ US

In 2018–2021, Guatemala and El Salvador played key roles in Mexico's coal exports in value terms, together accounting for 100.0% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Mexico in value, 2018-2021

Imports coal to Mexico

Imports in kind, K t

The data reveals irregular changes, indicating a volatile market environment. In 2018, imported coal volumes in Mexico reached their minimum, while the maximum was recorded in 2019 at 5 623 K t, representing a 54-fold variation between these years. In 2021, imports reached 361 K t, showing a robust decrease of 17.0% year-over-year. The largest increase occurred in 2019 at 5,308.8%, and the largest decline was in 2020 at 92.3%.

Annual dynamics of product's imports to Mexico in kind, 2018-2021, K t

Throughout 2018–2021, Colombia and the United States remained the principal sources for Mexico's coal imports in kind, jointly accounting for 99.3% of total flows, while other partners each held significantly smaller shares.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Mexico in kind, 2018-2021

Imports in value, M $ US

The market exhibited an unstable trend throughout the timeframe. In 2021, imported coal volumes in Mexico reached their minimum, while the maximum was recorded in 2019 at 675.2 M $ US, resulting in a 16-fold variation between these years. In 2021, imports totaled 0.8 M $ US, equivalent to a gradual decline of 4.4% year-over-year. The largest increase occurred in 2019 at 8.3%, and the largest decline was in 2020 at 93.5%.

Annual dynamics of product's imports to Mexico in value, 2018-2021, M $ US

In 2018–2021, Colombia accounted for 82.2% of total coal imports in value terms to Mexico, with the balance distributed across a wide range of smaller destinations.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Mexico in value, 2018-2021