Metallurgical coal, also known as coking coal, is a low sulfur, low ash, and low phosphorus grade of coal. It is used to produce high-grade coke, which is an important reactant for manufacturing of primary steel in the blast furnace process. Metallurgical coal can be easily distinguished from thermal coal due to its caking ability and carbon content. Metallurgical coal produces a strong, low-density coke, when it is heated in the absence of air, which softens on heating, and the volatile components, present in the coal, evaporate and flow out through pores. The resulting coke swells upon cooling and becomes larger in volume.

Demand for metallurgical coal is coupled the demand for steel. On an average, about 630 kg of coke is required to produce 1 ton of steel. Metallurgical coal is a vital reactant in the traditional basic oxygen furnace (BOF) steelmaking process. As such, its re-pricing is affecting steelmaking economics globally. Moreover, developing economies such as India, China, and Indonesia have substantially contributed in the rising demand for metallurgical coal across the globe. China is the largest producer and consumer of coking coal across the globe and produced about 804 million metric tons in 2015. Prices for metallurgical coal opened at US$ 78 per metric ton in January, 2016 and rose up to US$ 307 per metric ton by the end of 2016. This increase in price is primarily due to supply deficit, as demand for metallurgical coal has been stable. Therefore, to sustain the required supply of metallurgical coal, companies across the globe are reopening a few closed mines. Furthermore, current producers will now have to compete with new metallurgical coal suppliers across the globe, who had previously exited from the market owing to the low prices of metallurgical coal but have re-entered the market with the expectation that coal prices will stabilize. Therefore, the metallurgical coal market is anticipated to expand in the coming years.

The metallurgical coal market can be segmented based on coal grade and region. In terms of coal grade, the market can be divided into hard coking coals (HCC), semi-soft coking coal (SSCC), and pulverized coal injection (PCI) coal. Hard coking coals cost higher as compared to semi-soft coking coals as they have better coking properties. Pulverized injection coal is not categorized as a coking coal; however, it is used as a source of energy in the steel making process.

Based on region, the metallurgical coal market can be segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific dominated the market in 2016 and this trend is anticipated to continue during the forecast period. China dominated the global metallurgical coal market in 2016. Most of the coal mining companies in China are controlled by the government. Falling demand of metallurgical coal since 2012 till 2014 has resulted in the drop in its prices. As a result, in February, 2015, the Government of China implemented a top-down approach to decrease the congestion in the domestic coal mining industry. It ordered its coal mining companies to reduce their annual production by 9% or 500 million metric tons (MMTs), between 2019 and 2022. Furthermore, the government transferred 500 MMTs of coal mining capacity from smaller coal mining companies to larger coal mining companies to consolidate the production. However, due to the increase in coal prices, government of China has relaxed some rules in its supply reduction policy. This is anticipated to increase the demand for metallurgical coal during the forecast period.

Key players operating in the global metallurgical coal market include Indika Energy, Rio Tinto, Arch Coal Inc., BHP Billiton, Teck, Xstrata, and Anglo America.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

Custom Market Research Services

TMR offers custom market research services that help clients to get information on their business scenario required where syndicated solutions are not enough.

REQUEST CUSTOMIZATION

Metallurgical Coal Market

Pre Book