High global demand for low-grade coal

According to the 2019 coal market data compiled by Japan economic news agency, compared with the sharp drop in the price of high-grade coal, the global market demand for low-grade coal is still relatively high, and the price gap between high-grade and low-grade coal has been significantly reduced. According to the analysis, it is expected that the continuous high demand of low-grade coal will not be conducive to the global efforts against climate change. It is pointed out that Vietnam and other emerging economies in Southeast Asia are vigorously developing their economy, with huge coal consumption, which has formed a certain support for the low-grade coal market. In 2019, the price of low-grade coal with low calorific value dropped by 15% year-on-year. At the same time, developed countries are actively seeking energy transformation, and the consumption of high-grade coal with high calorific value is gradually reduced. In 2019, the price of high-grade coal dropped by more than 30%. Data show that the price difference between the two types of coal has narrowed to 1 / 3 in 2018. According to Japan economic news agency, the decrease in the price of high-grade and low-grade coal can clearly reflect the difference in attitudes towards coal between developed countries and emerging economies. In fact, the International Energy Agency (IEA) issued a forecast that global coal demand will grow by less than 1% from 2017 to 2030, among which coal demand in Japan, the United States and Europe is expected to continue to decline, but coal demand in Southeast Asian countries including Vietnam, India and other countries is expected to grow at a double-digit rate.