Coal market in New Zealand

Earlier Report Observations

New Zealand's coal market volume declined from 3 255 thousand tonnes in 2018 to 3 036 thousand tonnes in 2019, then dropped sharply to 1 715 thousand tonnes in 2020. A partial recovery followed, with the market reaching 2 227 thousand tonnes in 2021 and 2 514 thousand tonnes in 2022. The rebound in 2021-2022 was driven by a steep fall in exports, as weak steel production in China reduced international demand for New Zealand's coal, making more supply available domestically.

From 2022 onward, structural pressures reshaped the market. The crisis at state-owned Solid Energy, including significant layoffs, reflected broader challenges. The Emissions Trading Scheme and carbon pricing began influencing industrial demand, while logistical constraints at ports limited export capacity. Government policy, including a target to phase out coal at the Huntly Power Station by 2030, reinforced a long-term shift away from coal in electricity generation.

The Glenbrook steel mill remained a key domestic consumer, using around 0.8 million tonnes of thermal coal annually, providing a stable demand base. Meanwhile, hydro storage levels and weather patterns influenced short-term reliance on coal-fired power, adding volatility to consumption patterns as the market adjusted to policy and global signals.

Production coal in New Zealand

In kind, 2018-2021, K t

Top producers of coal, 2018-2021

World map of production of coal, 2018-2021

Coal production in New Zealand increased in 2021 after two consecutive years of decline. That year, production reached 2 868 K t, marking a 1.7% rise compared to 2020. However, looking at the broader period from 2018 to 2021, overall production fell by 11.2%, which translates to an average annual decrease of 3.9%. The lowest production level was recorded in 2020 at 2 819 K t, which also saw the steepest annual decline of 7.1%.

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

Exports coal from New Zealand

Exports in kind, K t

The export market for coal from New Zealand showed significant volatility during this period. Imports fluctuated dramatically, with a 22-fold difference between the peak in 2020 and the low in 2018. In 2021, coal exports stood at 679 K t, representing a sharp decline of 40.6% from the previous year. The highest export volume was recorded in 2020 at 1 143 K t, which also experienced the largest annual increase of 933.8%.

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

From 2018 to 2021, the main destinations for New Zealand's coal exports in kind were Japan, Australia, and South Korea. Japan accounted for 32.0% of exports, Australia for 21.0%, and South Korea for 19.6%. Together, these three countries made up 72.6% of total export flows.

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

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

Exports in value, M $ US

The value of coal exports from New Zealand exhibited irregular changes, reflecting a volatile market environment. There was a 43-fold amplitude between the peak in 2020 and the trough in 2018. In 2021, export value amounted to 67.2 M $ US, a contraction of 35.8% compared to 2020. The maximum value was recorded in 2020 at 104.6 M $ US, while the largest annual increase occurred in 2019 at 766.9%.

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

Between 2018 and 2021, Japan, Australia, and India were the top destinations for New Zealand's coal exports in value terms. Japan represented 30.5% of exports, Australia 22.7%, and India 22.3%. Collectively, these three countries accounted for 75.5% of total export flows.

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

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

Imports coal to New Zealand

Imports in kind, K t

Coal imports into New Zealand declined for the second year in a row in 2021, totaling 39 K t, a slight decrease of 2.1% from the prior year. Over the period from 2018 to 2021, imports fell by 48.2%, with an average annual decline of 19.7%. The highest import volume was recorded in 2019 at 112 K t, which also saw the largest annual increase of 48.7%. In contrast, the largest annual decline occurred in 2020 at 64.5%.

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

From 2018 to 2021, coal imports into New Zealand were overwhelmingly sourced from Australia, which accounted for 99.8% of total imports in kind.

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

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

Imports in value, M $ US

In 2021, the value of coal imports into New Zealand totaled 7.5 M $ US, an increase of 26.4% over the previous year. However, from 2018 to 2021, import value decreased by 20.2%, averaging an annual decline of 7.2%. The minimum value was recorded in 2020 at 5.9 M $ US, while the maximum was in 2019 at 12.9 M $ US. The largest annual decline occurred in 2020 at 53.8%, and the largest increase was in 2019 at 36.7%.

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

Between 2018 and 2021, the geographical distribution of coal imports in value terms highlighted a strong reliance on Australia, which absorbed 96.6% of total flows.

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

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