SteelBazaar Insight: Global Coal Production Trends Signal Shift in Energy Strategy

Global Coal Demand Growth Slows in 2024 Amid Renewable Surge
In a significant shift toward clean energy, global coal production shows a deceleration in growth during 2024, marking the first signs of a possible plateau after years of steady rise. This insight is driven by data from IEA and the Ministry of Coal, showing regional coal output trends across Asia Pacific, China, India, and other key markets.

📊 Key Production Highlights (2020–2024):
Region    2020    2021    2022    2023    2024 (P)
Asia Pacific    5800 MMT    6100 MMT    6600 MMT    7200 MMT    7300 MMT
China    3900 MMT    4200 MMT    4500 MMT    4700 MMT    4800 MMT
India    800 MMT    900 MMT    950 MMT    1000 MMT    1020 MMT
Australia    600 MMT    610 MMT    620 MMT    630 MMT    640 MMT
Indonesia    500 MMT    520 MMT    540 MMT    560 MMT    570 MMT

Rest of World    ~1200 MMT combined                
📈 Insights for India & Steel Industry
India’s Steady Growth
India's coal production touched 1,020 MMT in 2024 — a 27.5% growth since 2020. This indicates robust demand from the steel, power, and infrastructure sectors.

Asia Dominates Supply
Asia Pacific, driven by China and India, continues to account for over 70% of global coal output — reinforcing Asia’s dominance in heavy manufacturing and steel-based economies.

Shift Toward Renewables Slows Demand
Despite high production, global demand growth slowed due to aggressive renewable investments in developed nations. This could impact export competitiveness and raw material procurement for Indian steel players relying on imported thermal coal.

🔮 SteelBazaar Forecast
Domestic coal dependency will increase in the near term as international supply risks grow.

Steel producers should begin exploring green alternatives (like EAF and hydrogen-based steelmaking).

Investors are advised to watch coal price volatility and its ripple effect on steel cost structures.

🧠 SteelBazaar Recommendation
Steel players, policymakers, and logistic partners must align with energy diversification strategies. The upcoming quarters may bring pricing recalibrations, especially for those dependent on coal-fired routes. Early adoption of energy-efficient processes can act as both a cost hedge and a sustainability driver.