Metallurgical Coal Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 - 2028

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Metallurgical Coal Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 - 2028

Status : August, 2020 | Chemical & Materials | PPT format

Report Digest

Metallurgical Coal Market - Introduction

Besides generating electricity, metallurgical coal is witnessing a rapid adoption for the production of steel across various cities of the world. Metallurgical coal is the key ingredient in the production of steel from blast furnace and nearly 800 kg of this coal is consumed to produce steel worth one ton. Demand for steel has been growing in parallel to the urbanization for the production of automotive, electronic devices, and construction products, which is anticipated to fortify the demand for metallurgical coal market.

Another crucial by-product obtained by heating the metallurgical coal in coke ovens is coal tar. Demand for coal tar produced by metallurgical coal is ascending from the healthcare industry, in order to treat various skin conditions, on account of its anti-parasitic, anti-itching, anti-inflammatory, and antifungal properties. Utilization of coal tar as a generic medication and its over the counter availability is one of the strong growth drivers for the metallurgical coal market.

Metallurgical Coal Market – Novel Developments

  • Contura Energy Inc. and Alpha Natural Resources have recently entered into a merger, in order to be the largest metallurgical coal producer in the U.S. The operations of this merged company will be held in West Virginia & South Virginia. The merger is anticipated to save up to about $50Mn per year. This deal will aid Contura and Alpha in increasing its scale and financial muscle, which in turn will lend more capital to the companies for further acquisition.
  • Peabody Energy Corp., a leading metallurgical coal producer, recently acquired Shoal Creek Seaborne metallurgical coal mine for US$ 387 Mn. The transaction includes preparation plant, mine, and logistical assets. The company believes that acquisition will offer it crucial strategies and finances in order to create additional shareholder value. The company expects the latter to integrate its operations into Peabody’s operation with as minimum friction costs as possible.

Some of the most prominent competitors operating in the competitive landscape of global metallurgical coal market include –

  • Anglo American
  • Arch Coal
  • BHP
  • Corondo Global Resources Inc.
  • Teck Resources
  • Alpha Natural Gas
  • Ram River Coal Corp.
  • West Cumbria Mining
  • New Colombia Resources
  • Contura Energy Inc.
  • Alpha Natural Resources
  • Peabody Energy Corp.
  • Murray Energy Corp.
  • Alliance Resource Partners LP
  • Blackjewel LLC
  • NACCO Industries, Inc.
  • CONSOL Energy Inc.
  • Global Mining Group LLC
  • Blackhawk Mining LLC
  • Warrior Met Coal Intermediate Holdco LLC

Metallurgical Coal Market Dynamics

Convergence of Technology and Coal Producing Methodologies to Foster the Growth of the Metallurgical Coal Market

The global metallurgical coal market is witnessing significant breakthroughs in the mining industry, on account of technological advancements. With the increasing shift towards automation, the operations of the mining industry are eased by the developments in artificial intelligence, machine learning, and robotics. The mining companies are leveraging next-gen technologies like Internet of Things and big data to create a connected network, in order to collect, monitor and process the data. This helps the mining companies in controlling their resources and trigger the growth of metallurgical coal market.

In addition to the mining methodologies, the drilling techniques are transforming too. Advanced diesel-hydraulic engine allows the resources to drill more efficiently and securely. Ease of producing metallurgical coal is expected to reflect positively on the global metallurgical coal market.

China Dominates the Global Metallurgical Coal Market, Owing to its Large-scale Production Capacity

Metallurgical coal has been traditionally consumed for two applications - for

 generating electricity and producing steel. Among the significant countries of the world, who are engaged in producing metallurgical coal, most of them primarily carry out the activity for export. On the contrary, China, the world’s largest coal producer, consumes almost all the coal domestically.

Increasing rate of population in China have pervasive need for electricity. Moreover, rapid urbanization and industrial revolution underpinned by technology have in turn created demand for electricity. This has resulted in an acute demand for metallurgical coal for generating electricity.

Rising Environmental Concerns Will Restrain the Growth of the Metallurgical Coal Market

There has been growing concerns about environmental degradation, on the back of the extensive utilization of fossil fuels, like metallurgical coal, across various geographies. As a result, stringent laws and promulgation pertaining to the air quality standards are legislated, on the back of the emission of nitrogen dioxide, sulfur dioxide, and photochemical ozone.

Besides degrading the atmosphere, the emission of harmful gases produced by the heating of metallurgical coal, in turn, damages the natural habitat of the aquatic systems and forests. The ambient air quality standards to restore healthy atmosphere is one of the most crucial factors restraining the growth of the global metallurgical coal market.

Metallurgical Coal Market Segmentation

Metallurgical coal market can be classified on the basis of coal grade, regions, and applications.

Metallurgical Coal Market – Coal Grade

The metallurgical coal market can be segmented divided into the following:

  • Hard Coking Coals
  • Pulverized Coal Injection
  • Semi-soft Coking Coal

Metallurgical Coal Market – Applications

Depending upon the applications, the metallurgical coal market can be classified into:

  • Steelmaking
  • Non-steelmaking

The study presents a granular assessment and quantitative evaluation of:

  • Key growth factors and prominent trends
  • Size and share of key segments in overall market
  • Key challenges and winning imperatives
  • Factors shaping competitive landscape
  • Insights into how contours of market will change in coming years
  • Technological advances
  • New avenues and imminent investment pockets
  • Regulatory landscape shaping current and future strategies of companies

The region-wise assessment includes market dynamics in:

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

The study is prepared with the help of an extensive primary and secondary research. Primary research includes but not limited to interactions, interviews, surveys, and events. Opinions of policy makers and industry experts are carefully integrated into the insights to complement primary research. Volumes of secondary data gleaned through renowned paid sources, annual statements, reputed journals, and government documents offer insights into current dynamics and key evolution trajectories the market is likely to assume. The research employs various industry-wide analytics methods and well-established methodologies to ascertain the attractiveness of key segments. Further, it evaluates the lucrativeness of key regions and factors underlying their maturity. The insights notably include a detailed analysis of forces behind vendor differentiation and offers insight into investment-decision making by prominent players.

The report strives to enlighten businesses and industry stakeholders on multiple facets of the growth dynamic of the market, the key of which include answers to:

  • Which key factors will shape the competitive landscape?
  • Which trends will stimulate research and development activities in different geographies?
  • Which are the lucrative growth areas and what is the size of potential they are likely contribute to the overall market?
  • Which disruptions in market growth are likely to come with the new business models?
  • Which are some of the recent overhauls in policies that may change the course of the market significantly?
  • Which are the geographies that will form sizable sources of new streams to new and established players alike?
  • How are top players likely to realign their strategy to counter the forces of competition?
  • Which key strategies emerging players are likely to focus on to consolidate their position?
  • Which changes in end-user preferences might affect the status quo held by the leading players?
  • Which are some of the game-changing innovations influencing the projected share and revenue of the market and its segments?

Note: Utmost care has invariably been taken to present data and arrive at statistics at all the TMR Research reports. Meanwhile, some recent developments and new industry trends may take time to be included in the reports.