Commodity Knowledge
Commodity Knowledge
Thermal coal is sometimes called steaming coal because it is used to fire power plants that produce steam for electricity and industrial uses. Locomotive trains that run on steam may also be fueled with "bit coal" (a nickname for bituminous coal).

The bulk of coal produced worldwide is thermal coal used for power generation. It is also supplied as fuel to other industries such as the cement sector.

About 5.3 billion tonnes of hard coal is produced globally each year with the majority used in the country of production. In 2011, seaborne thermal coal demand accounted for approximately 790 Mt and was supplied from a larger number of countries, with coal producers operating in a highly-competitive global marketplace.

Demand for thermal coal is driven by demand for electricity and is also affected by the availability and price of competing fuels such as oil and gas, and increasingly, the cost of carbon. Global demand is also affected by alternative generating technologies such as nuclear power and renewable energy.

Thermal coal demand rose dramatically during 2007 and 2008, primarily due to the increasing demand for power generation in the Far East.

Even though the demand and price hikes were largely driven by Chinese demand, there was also a lot of sentiment distorting the true demand/supply picture for thermal coal.

The actual demand/supply balance of steam coal and power generation did not, and still does not experience such wild swings.

Steam coal is a grade between bituminous coal and anthracite, once widely used as a fuel for steam locomotives. In this specialized use it is sometimes known as sea-coal in the U.S.

That is why the industry agrees that, even though the global financial crisis has had an impact on power generation forecasts, electricity production from coal is continuing at much the same pace as before Major Producers: China, Australia, South Africa, Colombia, Russia, United States, Indonesia
 
Contact Avani Resources
Email : info@avani.sg

Alternatively, you can also fill up this form to get in touch with us.
Get in Touch

Home | About us | Stakeholders | Shipping | CSR | Awards and Highlights | Commodity knowledge | Contact Us
Copyright © avani.sg, 2013, All right reserved Privacy Policy | Disclaimer