In recent years, there has been a convergence of international trade with traditional domestic markets. As imports continue to increase in many coal producing regions, the influence of trade on domestic markets has been twofold. Firstly, imported coal displaces domestic production and, secondly, international price trends may drive prices of what remains of the indigenous market for coal.
While international trade does not provide any additional benefits in terms of reduced CO2 at coalfired power stations, importing coal provides many benefits, such as cost savings, improved coal quality, enhanced supply diversity, and often fills a gap which domestic supply is unable to fulfil. This report examines how coal markets have evolved over the decades with utilities and heavy industry moving away from their seemingly secure yet captive markets of domestic coal to procuring more supplies from the international market to satisfy the need of cost reduction and better and consistent quality of fuel product. The various factors that have led to a rise in popularity of seaborne traded coal, and the future of domestically produced coal in the Pacific market are discussed.
This is in one of three reports which examine the changing trends in coal imports over the long term in three geographical regions: a global perspective, the Atlantic market and the Pacific market.
Title: Impacts of seaborne trade on coal importing countries – Pacific market, CCC/202
Author(s): Paul Baruya
ISBN: ISBN: 978-92-9029-522-8
Publication Date: 01/08/2012