Coal market in Western Asia

Earlier Report Observations

The coal market in Western Asia contracted between 2019 and 2020, with volume dropping from 148.4 million tons to 137.1 million tons. This decline was primarily driven by the global economic slowdown and the COVID-19 pandemic, which reduced industrial activity and electricity demand across Asia. Lower coal imports into China and Europe further depressed international prices, discouraging local production.

Market conditions reversed sharply from 2021 onward as the global energy crisis took hold. Soaring natural gas prices prompted utility companies across Asia to seek coal-based alternatives, pushing regional coal prices upward. Simultaneously, policy shifts in key Asian economies, such as South Korea's removal of caps on coal-fired power generation, reinforced coal's role in the energy mix. These factors stimulated domestic coal production in Western Asia, which rebounded from 86.5 million tons in 2020 to 104.0 million tons in 2022, lifting total market volume to 150.0 million tons.

Beyond 2022, the region's coal market remained underpinned by Asia's continued reliance on coal for energy security. High gas prices and supply disruptions, exacerbated by conflicts in the Middle East and Ukraine, led several governments to adopt policies favoring coal-fired power. South Korea and Thailand, for example, moved to restart or expand coal capacity. While international coal prices stabilized after the 2022 peak, sustained investment in new coal plants across China, India, and Southeast Asia supported steady demand for coal in Western Asia.

Production coal in Western Asia

In kind, 2017-2020, K t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

Western Asia's coal production declined for the second year in a row. In 2020, the region produced 86,524 Kt of coal, marking an 8.7% decrease from the previous year. Production peaked in 2018 at 98,776 Kt, which also saw the largest annual increase of 14.4%.

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

Exports coal from Western Asia

Exports in kind, K t

Western Asia's coal exports reached 56 Kt in 2020, representing a significant 56.2% increase from the year before. Over the 2017-2020 period, exports grew by 24.4%, with a compound annual growth rate of 7.5%. The lowest export volume was recorded in 2019 at 36 Kt, which also experienced the largest decline of 25.2%.

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

From 2017 to 2020, Western Asia's coal exports were distributed across numerous countries. Russia accounted for 3.7% of exports, India for 1.7%, and Albania for 1.4%, with these three countries together making up just 6.8% of total export flows.

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

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

Exports in value, M $ US

The data shows irregular changes, pointing to a volatile market environment. Export volumes peaked in 2018 and fell to their lowest point in 2019, with a 2.1-fold difference between these years. In 2020, Western Asia exported $9 million worth of coal, a 38.9% increase from the previous year. The minimum value was $6 million in 2019, while the maximum was $13 million in 2018. The largest decline occurred in 2019 at 51.5%, and the largest increase was in 2018 at 89.9%.

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

Between 2017 and 2020, India, Russia, and Albania played notable but not dominant roles as buyers of Western Asian coal in value terms. India accounted for 17.2% of exports, Russia for 3.2%, and Albania for 1.4%, with their combined share reaching 21.8% of total export value.

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

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

Imports coal to Western Asia

Imports in kind, K t

After two years of decline, Western Asia's coal imports increased in 2020. The region imported 50,000 Kt of coal that year, reflecting a moderate 6.1% rise from 2019. The lowest import volume was in 2019 at 47,692 Kt, which also saw the largest decline of 4.1%.

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

From 2017 to 2020, Colombia, Russia, and South Africa were the main sources for Western Asia's coal imports in kind. Colombia accounted for 36.2% of imports, Russia for 29.7%, and South Africa for 7.3%, together representing 73.2% of total import flows.

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

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

Imports in value, M $ US

Western Asia's coal imports declined for the second consecutive year. In 2020, imports totaled $3,546 million, showing a 22.1% decrease from 2019. Over the 2017-2020 period, imports fell by 33%, with a compound annual decline rate of 12.5%. The highest import value was recorded in 2018 at $5,662 million, which also experienced the largest increase of 7.1%.

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

Throughout 2017-2020, Russia, Colombia, and Australia formed the key group of partners for Western Asia's coal imports in value terms. Russia accounted for 29.8% of imports, Colombia for 28.9%, and Australia for 7.4%, with their combined share reaching 66.1% of total import flows.

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

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