International Trade in Coal

Overseas coal trade has increased from 169 to 274 million metric tons (tonnes) between 1970 and 1983, representing a 3.8% average annual rate of growth. Metallurgical coal accounts for nearly 61% of the international coal market while steam coal's share is about 40%. By year-end 1983, the U.S. was the single largest coal exporter at 77 million tonnes, followed by Australia, 56 million tonnes; Poland, 35 million tonnes; South Africa, 28 million tonnes; USSR, 27 million tonnes; and Canada, 17 million tonnes. Coal exports can play a more significant role for one country than another country. For instance, in the U.S., coal exports accounted for only 9% of total coal demand in 1984 while in Australia, exports accounted for 53% of that country's total coal demand. Of all the major coal exporters, only U.S. exports accounted for less than 10% of total consumption in 1984. Japan is the largest importer of coal, 73.8 million tons in 1983. Although the majority of Japan's imports are metallurgical coal, steam coal imports into Japan increased seven-fold between 1978 and 1983, from 2 to 14 million tonnes. Australia is the leading exporter of both metallurgical and steam coal to Japan, accounting for 47% and 55% of Japan's coal imports, respectively. Since 1978, South Africa has developed into a major steam coal exporter to Japan, increasing its market share from 7.9% to 18.8%. The U.S., which was not even a player in Japan's steam coal market in 1978, has made inroads and accounts for 6.7% of Japan's steam coal imports. However, this translates into only one million tonnes. In the European coal market, for the most part, the U.S. is the leading supplier of metallurgical coal and South Africa is the major supplier of steam coal. The U.S. was not even a factor in the European steam coal market in 1978 and has made inroads during the last six years at the expense of Poland and South Africa. From 1978 to 1983, the U.S. has increased its market share in steam coal exports to France from 0.2 to 28%; Spain, 0 to 52%; Italy, 0 to 43.5%; Denmark, 0 to 19%; Germany, 0.5 to 16%; and the Netherlands, 0.6 to 45%, respectively. The use of coal (solid fuels) as a fuel to produce electricity has had increasing signficance for most of the countries analyzed between 1978 and 1983. The flip side to this is that oil has lost its share of this market during this time period. Of all the countries selected, only France reported a decline in coal's share of total electricity production. This is a reflection of France's ambitious nuclear program.