Global coal production will increase slightly in 2020

Global data, a data analysis company, recently released a report that affected by the spread of the new coronavirus covid-19, after three consecutive years of growth, global coal production is expected to increase by 0.5% in 2020, from 8.13 billion tons in 2019 to 8.17 billion tons. The company pointed out that China was the most affected. In the first two months, China's coal production fell by 6%, mainly due to the outbreak and the failure of workers to return to the mine in time. However, by March 4, China's coal production capacity has recovered to 83%, and production will gradually pick up, with a drop of only 1.2% expected by the end of the year. The global power coal production is expected to be 7.05 billion tons, with a year-on-year growth of 0.5%. The output of coking coal is 1.1 billion tons, which is the same as that of the previous year. In the next four years, driven by demand from India and China, global power coal production will grow at an average annual rate of 1.9%. By 2023, the output will reach 7.6 billion tons.

Vinneth Bajaj, senior mining analyst at global data, believes that globally, coal production is less affected by the epidemic compared with other commodities, mainly because coal is considered to be an essential raw material for maintaining power supply, allowing normal production of coal mines during the blockade period. China's total coal consumption is expected to decrease by 0.5% in 2020, and power coal consumption in some closed areas will decrease by 0.3%. By March 1, 2020, the coal consumption of coal-fired power plants in China has decreased by 3%. In the first two months, China's electricity production fell by 8%. India's coal production is expected to be 845 million tons in 2020, an increase of 8.3% over 2019. During the 21 day closure period, South African coal is allowed to be produced as usual. In the long run, though electricity demand is still growing, the proportion of coal-fired power generation will be in a downward trend, Winnett said. At present, China and India account for 67% and 75% of coal-fired power generation respectively. However, both countries are committed to reducing carbon dioxide emissions, and by 2030, the proportion of coal-fired power generation in China and India will drop to 58.5% and 50% respectively.