Wood charcoal market in Mongolia, 2026

Earlier Report Observations

Between 2018 and 2020, Mongolia's wood charcoal market volume increased from 17 330 t to 17 616 t, with production rising steadily each year. This growth occurred amid government efforts to stabilize the economy through IMF-backed programs, which fostered a supportive macroeconomic environment. The COVID-19 pandemic in 2020 caused a broad economic contraction, but charcoal production continued to expand, likely sustained by stable domestic demand for heating and household use.

From 2021 to 2023, market growth accelerated, reaching 18 209 t. A key development was the 2022 update to environmental legislation, which strengthened forest protection and imposed sanctions for environmental damage, directly affecting the forest and wood products sector—including charcoal production. Simultaneously, significant logistics improvements, such as new railway lines commissioned for coal exports, indirectly enhanced transport infrastructure, supporting broader economic activity and material flows.

By 2023, the diversification of energy coal exports and ongoing infrastructure projects under the New Recovery Policy continued to bolster economic conditions. The launch of a state-run mineral commodity exchange further formalized trade transparency, contributing to a stable operating environment that supported domestic charcoal production for the local market.

Production wood charcoal in Mongolia

In kind, 2017-2020, t

Top producers of wood charcoal, 2017-2020

World map of production of wood charcoal, 2017-2020

Mongolia's wood charcoal production has increased for the third consecutive year. In 2020, the country produced 17 595 tonnes of wood charcoal, showing a modest year-over-year rise of 0.9%. Over the period from 2017 to 2020, production grew by 2.7%, with a compound annual growth rate of 0.9%.

Annual dynamics of production in Mongolia in kind, 2017-2020, t

Exports wood charcoal from Mongolia

Exports in kind, t

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

From 2017 to 2020, the country structure of exports in kind was highly concentrated, with China accounting for 100.0% of total flows.

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

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

Exports in value, $ US

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

Between 2017 and 2020, wood charcoal from Mongolia was primarily shipped to China, which absorbed 100.0% of total exports in value terms.

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

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

Imports wood charcoal to Mongolia

Imports in kind, t

The market exhibited volatility during these years. Import volumes reached their lowest level in 2020 and peaked in 2019, with a 3.6-fold difference between these years. In 2020, Mongolia imported approximately 20.6 tonnes of wood charcoal, representing a 72.4% decrease year-over-year. The maximum volume was recorded in 2019 at 74.6 tonnes, with the largest increase of 86.8% also occurring in that year.

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

From 2017 to 2020, the main sources for imports in kind were Germany (39.4% of imports in kind), Russia (37.3% of imports in kind), and Venezuela (10.6% of imports in kind), together accounting for 87.3% of total flows.

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

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

Imports in value, $ US

The market showed signs of volatility over the observed period. There was a 3.9-fold variation between the minimum in 2020 and the maximum in 2019. In 2020, wood charcoal deliveries to Mongolia were valued at 24 233 US dollars, which is 74.0% less than the previous year. The maximum value was recorded in 2019 at 93 355 US dollars, with the largest increase of 147.1% also occurring in that year.

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

Between 2017 and 2020, the principal destinations for imports in value terms were Germany (48.7% of imports in value terms), Venezuela (17.0% of imports in value terms), and Russia (13.2% of imports in value terms), jointly accounting for 78.8% of total flows.

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

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