Burned out: Natural gas expansion and slowing exports will lower demand for coal

Operators in the Coal Mining industry have been struggling over the five years to 2018, with industry revenue declining. Weakening demand from steel production abroad and abundant natural gas supplies have pushed coal prices down, hampering industry performance. The industry is expected to continue declining over the five years to 2023. Coal prices are expected to decrease during the period and slowing economic growth in major global markets (e.g. China) is expected to constrain demand...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 13-18
-3.0%
Forecast Growth 18-23
Profit
Employment
5,963
Businesses
8

Industry Threats & Opportunities

  • Slowing growth in emerging markets will place downward pressure on coal prices
  • Natural gas made significant inroads due to the looming threat of carbon regulation
  • Slowing growth in emerging economies will lead to reduced demand for coal
  • Industry Report - Industry Key Buyers Chapter

    Industry concentration has increased over the past five years as coal miners struggled to maintain operations as prices faltered. Furthermore, several operators with only one or two mining operations suspended mining activity indefinitely and some even completely exited the industry on account of consistent price declines in both coking and steaming coal. The top two companies in the industry, Teck Resources Ltd. and Westmoreland Coal Company are estimated to account for an estimated 66.6% of industry revenue in 2018...purchase to read more.

    Additional Insights for the Coal Mining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Coal Mining Industry are

  • Availability of resource
  • Ability to find new resource deposits
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as World price of coking coal and World price of steaming coal in the Coal Mining industry impact industry performance..

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    What's in this report

    What is the Coal Mining Industry?

    This industry mines bituminous, anthracite and lignite varieties of coal. Mining occurs underground and in surface pits. Industry operators may also develop coal mine sites and prepare the coal for sale by washing, screening and sizing it.

    Industry Products
  • Bituminous and subbituminous thermal coal
  • Metallurgical coal
  • Lignite thermal coal
  • Industry Activities
  • Bituminous coal and lignite surface mining
  • Bituminous coal and lignite underground mining
  • Anthracite mining
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of coking coal
  • World price of steaming coal
  • Canadian-dollar effective exchange rate index
  • GDP of mainland China

  • Current Performance
  • Metallurgical push
  • Global pressure
  • Natural gas gaining
  • Chart: Revenue Growth

  • Industry Outlook
  • Price fluctuations
  • Greenhouse gas concerns
  • Table: Coal Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Coal Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cement Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada
  • Thermal Power in Canada

  • Key Selling Industries
  • Chemical Product Manufacturing in Canada
  • Construction & Forestry Equipment Wholesaling in Canada
  • Gasoline & Petroleum Wholesaling in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada

  • Products & Services
  • Metallurgical coal
  • Bituminous and subbituminous thermal coal
  • Lignite thermal coal
  • Chart: Coal Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Industrial energy and nonenergy uses including Coke plants
  • Power producers
  • Chart: Major Market Segmentation for the Coal Mining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • All other including rent and utilities
  • Chart: Cost Structure Benchmarking – Sector vs Coal Mining

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Coal Mining Industry

  • Industry Globalization
    Teck Resources Ltd., Westmoreland Coal Company,
  • Table: Teck Resources Ltd. - financial performance
  • Table: Westmoreland Coal Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Coal Mining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Coal Mining Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of steaming coal (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Coke
  • The solid residue remaining after certain types of coal are heated to a high temperature out of contact with air until nearly all components that easily vaporize have been driven off.
  • Longwall Mining
  • A form of underground mining in which large blocks or panels of coal are excavated using a shearer. The mine roof collapses as the shearer retreats.
  • Metallurgical Coal
  • Coal with a high carbon content used to produce coke for steel making. This type of coal is also referred to as coking coal.
  • Open Cut Mining
  • A type of surface excavation in the form of an inverted cone; the shape of the mine opening varies with the shape of the mineral deposit.
  • Thermal Coal
  • Coal with a high energy content burned as fuel in power stations. This type of coal is also referred to as steaming coal.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Coal Mining market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Coal Mining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Coal Mining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Coal Mining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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