Global coal demand set to stay near record till 2027, says IEA, production at all-time high

India is also set to see a demand growth of over 5% to 1.3 billion tonne, a level only touched by China in the past.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The global demand for coal is expected to hit a new high in 2024 and will stay near these levels till 2027, latest report by International Energy Agency (IEA) released on December 18 has said.

The coal demand is 'poised to rise to 8.77 billion tonnes in 2024, a record', the report said, adding that the demand is expected to stay 'close to this level through 2027' as renewable energy sources generate more power and China's coal consumption levels off.

The IEA said demand for coal is rising in some emerging economies where electricity consumption is rising sharply along with economic growth, such as India, Indonesia and Vietnam. As a result, coal production touched an all-time high in 2024, though IEA sees growth expected to flatten through 2027 as 'structural changes' take place. The international trade of coal in volume terms is also set to reach a record of 1.55 billion tonnes in 2024.

India's strong demand has meant that imports have stayed at levels seen last year despite a production push led by Coal India.

IEA says Asia remains at the centre of the international coal trade, with China, India, Japan, Korea and Vietnam being the largest importing countries, and Indonesia along with Australia being the largest exporters.

India has set a coal production target of 1,193.39 million tonne (MT) for FY26, up 10.5 percent from the FY25 target, according to two senior officials in the Ministry of Coal.

The year also saw the three largest producers – China, India and Indonesia – reach record output. India's production is expected to continue to grow, spurred by robust demand and government's efforts to reduce imports.

India is also set to see a demand growth of over 5% to 1.3 billion tonne, a level only touched by China in the past.

China, on the other hand, consumes 30% more coal than the rest of the world put together. For 2023, China accounted for over 56% of the global demand.