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๐Ÿ“ฆ Bituminous coal

Bituminous coal

HS Code:

๐Ÿ“ฆ

Overview

Bituminous coal (HS Code: 2701.12) is a type of coal with a high carbon content and energy value, widely used for electricity generation, steel production, and industrial heating. It is distinguished from other types of coal by its relatively high heat value and is a critical resource in global energy markets. Bituminous coal accounts for a significant portion of the world's coal trade due to its widespread availability and utility in industrial applications.

Total Trade Volume

Approximately 1.2 billion metric tons

Data from 2022

Source

International Energy Agency (IEA) and UN Comtrade Database

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

15% (imposed by certain developing economies to protect domestic industries)

Lowest Rate

0% (under free trade agreements such as the EU-Australia FTA)

Common Restrictions

  • Import quotas in countries with domestic coal industries
  • Environmental regulations limiting high-sulfur content coal
  • Export bans during national energy crises
  • Anti-dumping duties in response to market distortions

Market Trends

Shift towards cleaner energy sources

Declining demand in developed economies as renewable energy adoption increases, though offset by growth in Asia-Pacific markets

2020-2022

Rising demand in Asia-Pacific

Countries like India and China continue to drive demand due to industrial growth and energy needs, sustaining global trade volumes

2021-2023

Geopolitical disruptions

Sanctions on Russian coal exports following the Ukraine conflict have shifted trade flows towards alternative suppliers like Australia and Indonesia

2022

Recent Developments

EU Ban on Russian Coal Imports

The European Union implemented a ban on Russian coal imports as part of sanctions following the invasion of Ukraine, redirecting demand to other global suppliers.

August 2022

Increased prices and supply chain reconfiguration, benefiting exporters like Australia and South Africa.

Chinaโ€™s Coal Import Surge

China increased bituminous coal imports to meet energy demands amid domestic production shortfalls and heatwaves driving electricity consumption.

Mid-2023

Boosted trade volumes for Indonesia and Australia, contributing to higher global coal prices.

Global Push for Decarbonization

COP27 discussions emphasized accelerated transitions away from coal, with several countries pledging to phase out coal-fired power plants by 2030.

November 2022

Long-term downward pressure on bituminous coal demand, particularly in OECD countries, though short-term trade remains robust in developing markets.