Global Coal Demand Drives US Exports, Ignoring Climate Risks

The U.S. exported a record 6.1 million metric tons of thermal coal to Africa in the first eight months of 2024, and it represented an 83% rise compared to the same period of last year. That made the U.S. Africa's leading supplier of coal by taking 64% of the continent's coal imports. U.S. coal exports, also to Asia, totaled 11.1 million tons, the third highest on record.

This growing quantity of coal exported raises concern because, as a general thing, coal is a massive contributor to carbon emissions. While the rest of the world is trying to reduce consumption of coal to diminish its use as a source of electricity, demand is so huge in Africa and Asia that keeps U.S. exports going apace.

India leads the key markets for US coal in 2024, accounting for 7.3 million tons, followed by Morocco at 3 million tons and Egypt at 2.9 million tons. Morocco and Egypt use the commodity both industrially and for generating electricity. Egypt, which uses coal mainly to produce cement, saw a growth of 30% in its coal imports this year. In contrast, Morocco's coal consumption slightly declined.

African Coal Demand The continent imported 9.48 mn tons of thermal coal in 2024, a marginal drop from 2023 but the third highest recorded tally. For two straight years now, Africa's coal imports have risen by 12% and thus it became a prime market for coal suppliers while Asia remained the leading market.

South Africa is the largest coal-consuming country in Africa and covers most of its needs from domestic production, while Zimbabwe, Botswana, and Zambia are supplied by local production or trucks from South Africa. Morocco and Egypt would be more accessible to seaborne exporters like the U.S., with short shipping times from U.S. coal ports to African terminals.

Morocco imports roughly 750,000 tonnes every month, and though imports into Egypt are less but have increased to about 400,000 tons every month. This has made Egypt an almost attractive and increasing market for the coal exporters despite globalized trends for coal reduction.

That is to say, the exports of American coal are relatively high. Yet what mainly propels the rising export was just excellent demand from Asia and Africa. This trend upsets global climate goals in the reduction of usage of coal because of the environmental damage caused by this commodity.

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