Market Trends of Canada Coal Industry
This section covers the major market trends shaping the Canada Coal Market according to our research experts:
Metallurgy Sector to Witness Significant Growth
- Around 70% of global steel production is dependent on coal. Metallurgical coal or coking coal is a vital ingredient in the steel making process. Pulverized Coal Injection (PCI) technology involves injecting coal directly into the blast furnace to provide the carbon for iron making.
- In 2019, steel production in Canada decreased to 12.8 million metric tons in comparison to 13.4 million metric tons in 2018. Steel production is likely to drive coal consumption significantly.
- Canada's exports are primarily metallurgical coal. In 2018, Canada exported 34 million tonnes of coal around the world and imported 7.6 million tons of coal, mostly from the United States.
- In 2019, Canada exported over 3.1 million metric tons of steel to the United States, which is the biggest imported of Canadian steel. The United States accounts for over 89% of Canada's steel exports.
- The coal consumption is likely to decrease due to a decreasing share in power generation. Although post-COVID-19, with an increasing market of construction and infrastructure, steel production is expected to drive the coal demand.
Understand The Key Trends Shaping This Market
Download Sample
Rising Environmental Concerns to Restrain the Market
- Rising environmental concerns in Canada and the world over greenhouse gas emissions from the burning of coal and global warming are expected to restrain the coal market in the country.
- Due to climate change policies, the production of coal witnessed a downfall to 0.4 EJ in 2019, from a high of 1.51 EJ in 2013. The production is likely to decrease further by the end of 2020 due to market restrictions.
- The Canadian government has already phased out the usage of coal for electricity generation and the energy produced by coal will be eliminated by 2030.
- Although coal will still be used for metallurgical purposes in the country, the phasing out of coal for electricity generation will have a huge impact on the coal market in the country.
- The decrease of coal consumption due to environmental policies and increasing renewable share, the market for coal in Canada is expected to further decrease during the forecast period.
