Integration of Global Coal Markets

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coal market outlook

A lack of integration in the world coal market has seen it divided for a number of years into the Atlantic and Pacific regions but there is growing evidence that this is no longer the case.

Coal continues to be the predominant fuel for electricity generation worldwide, and a main source for global energy supply. Coal generates today over 41% of the world’s electricity and while its growth has slowed as it is losing market share to natural gas, coal consumption is still expected to grow at 0.5% per annum over the next 20 years.

A lack of integration in the world’s coal market has seen it divided for a number of years into the Atlantic and Pacific regions, in particular because of the cost of bunker fuel compared to the value of the coal being transported.