Coking Coal and Thermal Coal Market Size & Share Trends, 2033

Coking Coal and Thermal Coal Market Overview

The Coking Coal and Thermal Coal Market size was valued at USD 6.28 million in 2025 and is expected to reach USD 9.24 million by 2033, growing at a CAGR of 4.94% from 2025 to 2033.

The global coal sector achieved all-time highs in output and demand in recent years, with 2023 recording around 8 741 Mt of production and 2024 projected to reach approximately 9 000 Mt. Of this, thermal coal (also called steam coal) represents nearly 87 % of total volume, while coking coal (metallurgical coal used in steelmaking) accounted for approximately 819 Mt in 2023, rising from 800 Mt in 2022. China alone consumes roughly 4 900 Mt of total coal in 2024 — nearly 56 % of the global total — with India at some 1 300 Mt, becoming only the second country after China to exceed the 1 Bt level.

Production remains heavily concentrated: top coking coal producers in 2022 were China at 676 Mt (62 %), Australia at 169 Mt (15 %), Russia at 96 Mt (9 %), and the U.S. at 55 Mt (5 %). Meanwhile, thermal coal accounts for the bulk of electricity generation, with steam coal comprising around 84 % of China’s total coal consumption of 4 520 Mt in 2022. Global electricity generation from coal is projected at 10 700 TWh in 2024. This dual-market—coking and thermal coal—drives critical energy and industrial demand worldwide, with clear segmentation by end-use sectors and geographic concentration in Asia.

Key Findings

Driver: Surging industrialization and power demand across Asia-Pacific, particularly from China and India, is fueling the coking and thermal coal market's sustained growth.

Top Country/Region: China remains the leading player, consuming over 4,900 million tonnes of coal in 2024, making up nearly 56% of the global coal consumption.

Top Segment: Thermal coal dominates the market, accounting for over 87% of global coal usage, primarily driven by power generation applications worldwide.

Coking Coal and Thermal Coal Market Trends

The global coking coal and thermal coal market is undergoing a significant transformation, influenced by geopolitical shifts, growing energy demand, and technological advancements. In 2023, global coal demand reached 8,741 million tonnes, the highest in recorded history, with thermal coal representing the largest portion at more than 7,600 million tonnes. The consumption is anticipated to surpass 9,000 million tonnes in 2024 due to heightened energy needs in emerging economies. Thermal coal remains indispensable for electricity generation, especially in coal-dependent countries such as China, India, Indonesia, and South Africa. For instance, thermal power contributes over 62% of India’s electricity, requiring approximately 1,100 million tonnes of thermal coal annually. Similarly, in Indonesia, thermal coal exports reached 518 million tonnes in 2023, mainly destined for Southeast Asia and China. Meanwhile, the metallurgical (coking) coal segment is benefiting from strong steel production, particularly in Asia. China, which produced 1.03 billion tonnes of steel in 2023, consumed over 676 million tonnes of coking coal. Australia, the world’s largest exporter of metallurgical coal, shipped over 171 million tonnes of coking coal in 2023, supplying markets in India, Japan, and Korea.

A growing trend is the diversification of coal trade routes due to supply chain disruptions. For example, following sanctions on Russia, Europe reduced its Russian coal imports from 50 million tonnes in 2021 to under 15 million tonnes in 2023, increasingly turning to Colombia, South Africa, and Indonesia for alternative sources. Additionally, coal prices have remained volatile since 2022, with thermal coal prices ranging between $150 and $400 per tonne depending on the origin and calorific value, while coking coal prices have fluctuated from $250 to over $370 per tonne in response to demand and logistics bottlenecks. Another major trend involves the development of carbon capture and storage (CCS) and high-efficiency low-emission (HELE) coal plants, especially in countries like China and Japan, which aim to reduce the carbon footprint of thermal coal without eliminating coal entirely. As of 2024, more than 300 HELE power units are operating globally, with over 220 in China alone. Despite the global push for renewables, coal remains a strategic commodity. The rising demand for reliable baseload power in developing economies is expected to keep the coking and thermal coal markets highly active and relevant over the coming years.

Coking Coal and Thermal Coal Market Dynamics

DRIVER

Rapid Industrialization and Energy Demand in Emerging Economies

Industrial and infrastructure development in Asia-Pacific is driving demand for both coking and thermal coal. In 2024, China’s steel output surpassed 1.03 billion tonnes, requiring around 670 million tonnes of coking coal. Simultaneously, India’s steel production exceeded 125 million tonnes, leading to a significant increase in coking coal imports, particularly from Australia and the U.S. On the thermal coal side, India consumed more than 1,100 million tonnes of coal for power generation in 2023, marking a 7.6% increase from the previous year. Southeast Asia’s coal demand is also climbing, with Vietnam’s coal imports growing from 54 million tonnes in 2022 to over 65 million tonnes in 2023 due to growing electricity demand.

RESTRAINT

Transition Toward Renewable Energy and Climate Policies

The global decarbonization movement and policy shifts are restraining coal’s long-term outlook. In 2023, over 50 countries announced or expanded net-zero targets, with 40 of them initiating policies to phase down coal usage. For example, the European Union decreased coal-fired power generation by 23% year-on-year in 2023, reducing thermal coal imports from 146 million tonnes in 2022 to under 100 million tonnes. The U.S. shut down more than 18 gigawatts of coal-fired generation capacity between 2022 and 2023. Investors are also withdrawing capital from coal-related assets, as over 200 global financial institutions adopted coal exclusion policies. This capital flight and regulatory pressure create uncertainty in coal markets, limiting expansion and modernization in some regions, especially in developed economies.

OPPORTUNITY

Expanding Steel Infrastructure Projects and Coal Gasification

Despite environmental concerns, coking coal benefits from rising demand in steel infrastructure and innovation in clean coal technologies. India’s National Infrastructure Pipeline involves investment in roads, rail, ports, and real estate, increasing steel consumption projections by over 130 million tonnes by 2025. This development pushes demand for coking coal, which is vital for blast furnace operations. Simultaneously, China and India are investing heavily in coal gasification and coal-to-liquid (CTL) technologies. China had 39 operational coal gasification facilities in 2023 and is planning 12 more. Additionally, clean coal initiatives like integrated gasification combined cycle (IGCC) and coal beneficiation are gaining traction. These innovations open new investment avenues while supporting cleaner use of coal in power and industry.

CHALLENGE

Volatile Pricing and Disrupted Supply Chains

The coal market faces substantial challenges due to unpredictable pricing and geopolitical instability. Thermal coal prices spiked to over $400 per tonne in early 2022, before falling below $170 in mid-2023. Similarly, coking coal prices ranged from $250 to over $370 per tonne depending on supply routes and port congestion. Russia’s reduced exports due to sanctions impacted Europe’s supply chain, forcing it to diversify to South Africa, Australia, and Colombia. In 2023, Russian coal exports dropped by 35%, while Indonesian exports surged by over 7% to meet the shortfall. Australia’s export infrastructure has also suffered from frequent flooding and rail bottlenecks, reducing shipment efficiency. For example, the Goonyella rail system in Queensland experienced major service disruptions in mid-2023, delaying more than 4 million tonnes of coking coal exports. These logistics issues, combined with price volatility, make long-term planning and supply security difficult for major importers and producers alike.

Coking Coal and Thermal Coal Market Segmentation

The coking coal and thermal coal market is segmented based on type and application. By type, it is divided into coking coal and thermal coal. By application, the market includes power generation, steel manufacturing, cement production, and various industrial applications. Each segment shows distinct usage patterns and regional demand fluctuations.

By Type

Coking Coal: also referred to as metallurgical coal, is a key raw material in steel production. In 2023, global coking coal production stood at approximately 819 million tonnes. China is the largest producer and consumer of coking coal, accounting for 676 million tonnes or about 82% of global coking coal usage. Australia exported more than 171 million tonnes of coking coal in 2023, with major buyers including India, Japan, and South Korea. India's coking coal imports surged to over 70 million tonnes in 2023, reflecting its growing steel production needs. Coking coal has high carbon content and low ash, making it suitable for use in blast furnaces.
Thermal Coal: or steam coal, is primarily used in electricity generation. In 2023, thermal coal accounted for nearly 7,600 million tonnes of the total global coal consumption. China consumed approximately 4,520 million tonnes of thermal coal for electricity generation, while India used over 1,100 million tonnes. Indonesia, the largest exporter of thermal coal, exported over 518 million tonnes in 2023, with significant volumes sent to China, India, and the Philippines. Thermal coal is also used in cement kilns and other heat-intensive industrial applications due to its affordability and availability.

By Application

Power Generation: is the dominant application segment for thermal coal. Over 10,700 TWh of electricity globally was generated using coal in 2024, with thermal coal accounting for more than 85% of coal-fired power output. China generated over 5,800 TWh using thermal coal, while India generated around 1,300 TWh. Coal-fired generation remains vital in emerging economies where renewables cannot yet fully meet base-load requirements.
Steel Manufacturing: Coking coal is essential for steel manufacturing, especially in integrated blast furnace operations. In 2023, steel manufacturing accounted for more than 95% of coking coal consumption. China produced over 1.03 billion tonnes of crude steel, while India exceeded 125 million tonnes, requiring massive volumes of high-grade metallurgical coal.
Cement Production: Thermal coal is used as a fuel in cement kilns. In 2023, global cement production exceeded 4.4 billion tonnes, and coal contributed to more than 40% of energy consumption in cement plants. India, the second-largest cement producer, consumes over 40 million tonnes of coal annually in this sector.
Industrial Applications: Various industries use coal for heat generation, including paper, textile, food processing, and metallurgy. In Southeast Asia, coal usage in non-energy industries increased by over 8% in 2023, reflecting the affordability and accessibility of coal as a fuel source.

Coking Coal and Thermal Coal Market Regional Outlook

The coking coal and thermal coal market demonstrates clear regional dominance, with Asia-Pacific taking the lead in both production and consumption. While emerging economies are fueling growth, developed nations are reducing their coal dependency. Trade shifts and policy changes heavily influence the coal market's regional dynamics.

North America

The United States remains a major coal producer, with 2023 output totaling approximately 597 million tonnes. Of this, thermal coal accounted for over 85%. U.S. coal exports reached 96 million tonnes in 2023, a 4.7% increase from the previous year. Coking coal comprised about 55 million tonnes of these exports, with major destinations being Brazil, India, and the EU. Despite this, domestic coal consumption continues to decline, as more than 18 GW of coal-fired power capacity was retired between 2022 and 2023. Canada's Teck Resources produced over 21 million tonnes of coking coal in 2023, primarily for Asian markets.

Europe

is actively reducing coal dependency due to its climate targets. In 2023, coal-fired electricity generation dropped by 23% across the EU. Germany, Poland, and the Czech Republic remain the largest consumers of thermal coal in the region. European coking coal imports declined from over 45 million tonnes in 2022 to 38 million tonnes in 2023. Sanctions on Russia caused a 70% drop in Russian coal imports into the EU. Countries like Poland continue to rely on coal for over 70% of their electricity, but diversification efforts are accelerating.

Asia-Pacific

dominates the coking and thermal coal market. China alone consumed over 4,900 million tonnes of coal in 2024, with 4,520 million tonnes used for power generation. India followed with consumption exceeding 1,300 million tonnes. Indonesia remained the largest thermal coal exporter with 518 million tonnes in 2023. Australia exported 171 million tonnes of coking coal, with Japan, India, and South Korea as top buyers. Vietnam and the Philippines are also increasing imports to meet growing electricity demand, with Vietnam's coal imports reaching 65 million tonnes in 2023.

Middle East & Africa

Although smaller in consumption, the Middle East and Africa show increasing demand for thermal coal. South Africa produced 240 million tonnes of coal in 2023, with exports totaling 75 million tonnes. Major destinations include India, Pakistan, and parts of Europe. The UAE and Egypt are importing more coal to diversify energy mixes. African nations are also investing in coal-to-power infrastructure, with over 8 GW of planned coal power capacity under development in 2024.

List of Top Coking Coal and Thermal Coal Companies

China Shenhua Energy (China)
Coal India (India)
BHP (Australia)
Glencore (Switzerland)
Peabody Energy (USA)
Arch Resources (USA)
Yanzhou Coal Mining (China)
Anglo American (UK)
Teck Resources (Canada)
Vale S.A. (Brazil)

China Shenhua Energy (China): produced over 310 million tonnes of coal in 2023, making it the world’s largest coal mining company. The company’s thermal coal division dominates Chinese domestic supply, with over 250 million tonnes sold for power generation.

Coal India (India): Limited produced 773 million tonnes of coal in FY 2023–24, accounting for over 80% of India’s coal output. Of this, more than 720 million tonnes were thermal coal, mainly used for domestic power generation. The company aims to cross 1 billion tonnes by 2026.

Investment Analysis and Opportunities

The coking coal and thermal coal market presents robust investment potential, particularly in emerging markets across Asia and Africa. With global coal demand projected to exceed 9,000 million tonnes in 2024, producers and infrastructure players are expanding assets to meet growing needs in power and steel sectors. India is a major hotspot for coal investment. In 2023, the Indian government opened 141 coal blocks for commercial mining, targeting an additional 400 million tonnes of annual capacity. Private firms, including Adani Enterprises and Vedanta, have secured new mining leases, aiming to meet India’s increasing power and steel demand. Investment in washeries and logistics has also surged, with more than ₹10,000 crore allocated in 2024 for railway sidings and automated handling. Indonesia, the largest thermal coal exporter, is attracting foreign investment to expand its coal terminals and transport corridors. In 2023, the country approved permits for 19 new coal ports, aiming to boost export volume and reduce domestic supply disruptions. These ports are strategically aligned to serve China, Vietnam, and the Philippines, which remain Indonesia’s top buyers.

In Africa, Mozambique and Botswana are gaining traction as new investment hubs. Mozambique’s Moatize mine, managed by Vulcan Energy, targets annual coking coal production of 18 million tonnes by 2025. Botswana is investing in two new thermal coal plants with a combined output of 2.4 GW, expected to be operational by 2027. Australia continues to invest in metallurgical coal, with BHP approving over $1.1 billion for extending operations at the Blackwater and Daunia mines in Queensland. These projects aim to supply high-grade coking coal for steel industries in Asia. In parallel, carbon capture and storage (CCS) technology is seeing new investment, particularly for thermal coal applications. China and Japan are leading, with over 25 new CCS pilot plants under construction as of 2024. These projects receive funding through state and private partnerships, offering a cleaner pathway to coal usage. With over 50 nations still dependent on coal for power and steelmaking, the investment outlook remains active. The combination of rising energy security concerns and infrastructure expansion is ensuring sustained funding flows into the coking and thermal coal ecosystem globally.

New Product Development

Technological advancements in mining, combustion efficiency, and emissions control are reshaping the coking and thermal coal industry. In 2023 and 2024, coal miners and utilities globally accelerated development of next-generation coal products and cleaner energy solutions. Australia’s BHP launched an advanced beneficiation technology at its Peak Downs mine to enhance the quality of coking coal, reducing ash content from 11% to under 8%. This innovation improves coke strength while reducing carbon intensity per tonne of steel output. Similarly, Anglo American deployed autonomous haul trucks in its Grosvenor coking coal mine, improving productivity by 22% and lowering operational costs. China, the world’s largest consumer of coal, launched a high-efficiency low-emission (HELE) technology upgrade program across 150 thermal coal power plants in 2023. These plants now operate at over 45% thermal efficiency compared to 35–38% previously. The upgrades reduce coal consumption by more than 15 million tonnes annually, without reducing electricity output. In India, Coal India commissioned three new coal washeries in 2024 with an annual capacity of 18 million tonnes.

These washeries produce cleaner thermal coal with 34% less ash, making it suitable for supercritical and ultra-supercritical boilers. In the U.S., Arch Resources introduced an innovative dust suppression system at its Leer South mine, reducing fugitive emissions by 40%. The company also initiated trials for carbon-neutral metallurgical coal blending using biomass-derived carbon additives. The rise of coal-to-chemicals and coal-to-liquids (CTL) is also a major frontier in product innovation. In 2024, China’s Shenhua Group expanded its CTL plant in Inner Mongolia to 7 million tonnes annual output, producing diesel and jet fuel from coal with carbon recycling units. Thermal coal power producers are also experimenting with ammonia and hydrogen co-firing. In Japan, JERA tested a 20% ammonia blend at the Hekinan Power Station, reducing CO₂ emissions by 18% in trial operations. Similar pilot programs are underway in South Korea and the U.S., where co-firing with hydrogen is being explored. These new product developments not only extend coal’s relevance in a decarbonizing world but also enhance its competitiveness against renewables. Innovation in combustion, processing, and emissions control is vital to coal’s transitional role in global energy and industrial frameworks.

Five Recent Developments

BHP approved a $1.1 billion investment in 2023 to extend the life of the Blackwater and Daunia coking coal mines in Queensland, adding over 15 years of mine life and 80 million tonnes of new reserves.
China Shenhua Energy launched a 1.2 GW ultra-supercritical thermal coal plant in Shaanxi in March 2024, operating at 46.7% thermal efficiency with advanced carbon capture systems.
Coal India commissioned the Kusmunda Washery in Chhattisgarh in February 2024, with 10 million tonnes annual capacity and 25% ash reduction efficiency.
Glencore completed acquisition of the Cerrejón coal mine in Colombia in 2023, adding 28 million tonnes of thermal coal to its export capacity.
Teck Resources began commercial-scale operations at its new water treatment facility at Elk Valley in 2023, improving selenium levels in coking coal runoff by over 80%.

Report Coverage of Coking Coal and Thermal Coal Market

This report comprehensively covers the global coking coal and thermal coal market, detailing market performance, consumption patterns, production capacity, and key regional dynamics. It addresses both types of coal—coking coal used primarily in steel manufacturing and thermal coal used in power generation—with insights into trends, segmentation, and growth areas. The study includes production data from leading coal-producing nations such as China, India, Australia, the U.S., and Indonesia. For instance, global coal production stood at 8,741 million tonnes in 2023, with China alone producing over 4,500 million tonnes. Coking coal accounted for 819 million tonnes globally, with Australia leading in exports at 171 million tonnes. The report evaluates end-user industries, including electricity generation, which consumed more than 10,700 TWh of coal-fired power in 2024, and steel production, which used nearly 700 million tonnes of metallurgical coal globally.

Segmentation analysis covers four key applications: power generation, steel manufacturing, cement production, and industrial heating. Regional coverage spans North America, Europe, Asia-Pacific, and the Middle East & Africa, offering detailed insights into country-wise performance. For example, India’s coal demand increased by 7.6% year-over-year in 2023, while European coal imports declined significantly due to the Russian sanctions and green energy transitions. Company analysis includes major producers like China Shenhua, Coal India, BHP, Glencore, Peabody, and Teck Resources. China Shenhua produced over 310 million tonnes of coal in 2023, while Coal India contributed over 773 million tonnes to India’s domestic market. In addition, the report outlines five recent developments, technological innovations, investment trends, and upcoming opportunities, including clean coal technologies, gasification, and CCS implementation. It presents a clear view of the competitive landscape and future strategies shaping this high-demand, high-volume industry.