Coal market in Uzbekistan

Earlier Report Observations

The Uzbek coal market began to transform in 2018 with the inclusion of imported coal from Kyrgyzstan and Kazakhstan on the commodity exchange and the introduction of a customs duty exemption, which improved import availability. This was followed by reported growth in domestic production from the state-owned Uzbekugol in 2019, bolstering local supply. A significant expansion occurred in 2020, as market volume surged to 7.1 million tons. This jump was supported by ongoing import incentives and investment projects aimed at modernizing and technologically upgrading the coal mining industry, which helped increase output.

In 2021, a government recommendation for enterprises to switch from natural gas to alternative fuels, including coal, due to a gas shortage, aimed to boost coal consumption. Domestic production responded, growing by over 900 thousand tons that year. However, a sharp contraction in import volumes led to an overall market decrease to 5.8 million tons. The market rebounded strongly in 2022, reaching 8.1 million tons. This growth was driven by a continued rise in production, increased imports from neighboring Kyrgyzstan, and the sustained effect of preferential import regulations on the exchange.

By 2023, domestic coal extraction hit a record high of 5.8 million tons, with specific mining branches exceeding their historical output. Government policy focused on attracting private subsoil users and investment projects to further develop the sector. Looking ahead, authorities announced strategic plans to phase out regulatory price controls in favor of market-based pricing and to fully meet domestic coal demand through local production by 2027.

Production coal in Uzbekistan

In kind, 2017-2020, K t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

In 2020, Uzbekistan produced 4 132 K t of coal, marking a 1.9% increase from the previous year. Looking at the period from 2017 to 2020, production grew by 2.3%, which translates to an average annual growth rate of 0.8%. The highest production level was recorded in 2018 at 4 174 K t, with the largest annual increase of 3.4% occurring that same year. In contrast, 2019 saw the most significant decline, with production dropping by 2.9%.

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

Exports coal from Uzbekistan

Exports in kind, K t

The data shows irregular changes, pointing to a volatile market environment. Coal exports from Uzbekistan hit their lowest point in 2019 at 0.0 K t, then surged to a peak of 1 K t in 2020, representing a staggering 368 446.2% year-over-year increase. This resulted in a 3 685-fold gap between these two years. The largest decline occurred in 2018, when exports fell by 92.6%.

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

From 2017 to 2020, Uzbekistan's coal exports were primarily directed towards Pakistan, which accounted for 94.1% of total exports in volume terms.

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

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

Exports in value, M $ US

Market performance exhibited noticeable fluctuations during this period. Coal exports in value terms reached their lowest level in 2019 at 0.0 M $ US, then climbed to a peak of 0.1 M $ US in 2020, which was 191 131.1% higher than the previous year. This created a 1 912-fold amplitude between the trough and peak. The most substantial decline was recorded in 2018, with a drop of 96.3%.

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

Between 2017 and 2020, Pakistan was the main destination for Uzbekistan's coal exports in value terms, making up 89.9% of total flows. Other markets contributed smaller shares, forming a long tail of minor partners.

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

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

Imports coal to Uzbekistan

Imports in kind, K t

Coal imports into Uzbekistan increased for the third consecutive year. In 2020, imports reached 2 995 K t, up by 110.4% compared to 2019. Over the 2017-2020 period, imports grew by 246.8%, with a compound annual growth rate of 51.4%.

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

Throughout 2017 to 2020, Kazakhstan and Kyrgyzstan were the primary sources for Uzbekistan's coal imports in volume terms, together accounting for 99.8% of total flows.

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

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

Imports in value, M $ US

Cross-border shipments of coal into Uzbekistan rose for the third year in a row. In 2020, imports in value terms amounted to 103.9 M $ US, reflecting a 136.2% increase over the previous year. From 2017 to 2020, imports expanded by 281.1%, equating to an annualized growth rate of 56.2%.

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

During 2017-2020, Kazakhstan and Kyrgyzstan dominated as the main suppliers of coal to Uzbekistan in value terms, jointly representing 99.6% of total imports.

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

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