Coal news and updates

Australia’s coal export market: Shifting trade dynamics with Asia

Australia’s coal exports are concentrated across six key trading partners.

Despite strong growth in energy demand, partner countries’ clean energy plans and diversification of coal supply chains are putting Australia’s coal exports under pressure.

For the first time, Australia faces a trade deficit with Vietnam, reflecting a shift in the balance of trade between the two nations.

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More than 80% of Australian coal exports are shipped to Japan, China, India, South Korea, Taiwan and Vietnam. Australia has built stable trading relationships with these partners, and coal has long supported our trade surplus position.

The International Energy Agency’s (IEA’s) mid-year electricity market outlook forecasts that “in 2024 and 2025, the world’s electricity demand is set to grow at the fastest pace since its post-Covid rebound, fuelled by robust economic growth, intense heatwaves and continued electrification worldwide”. The IEA’s mid-year update on coal reported 2023 was a record for global coal consumption. Trade volumes are expected to reach a new high in 2024 (Figure 1) and be broadly flat through 2025. Australia, among others, is expected to benefit from this increased demand.