By Liat Graf
Reuters reported that, over the next five years, the global demand for coal will decrease due to lower consumption in China. According to the International Energy Agency (IEA), coal consumption will be at an increase of just 0.5 percent per year. The IEA’s annual coal market report states that coal consumption dropped by 1.9 percent last year, translating into 5.357 billion tonnes. This, they claim, was the result of lower gas prices, a surge in renewables, and efficiency improvements.
Globally, experts expect coal use to decrease in the United States, China, Europe and Canada, but rise in Asia. As for supply, the IEA experts an 0.8 percent increase per year, translating into 5.534 billion tonnes in 2020. Prices of coal have increased due to the low supply of the last year.
