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Coal Markets:

Russia

In 2008 Russia celebrated 20 years since its coalmining record level – in 1988 a nation extracted 425 mt of total 467 mt produced in the USSR. Just in 10 years production shrunk twice to 232 mt in 1998 – however privatization became the “magic wand” for the industry. From Soviet-era 250 underground and 60 surface mines 180 mines were liquidated, while others were privatized. As the result coal growth was reinstated and in 2008 the country manufactured 329 mt; nevertheless in 2009 it was a decline: they dug out 300 mt, or -8.7% to 2008.

In 2000s large private operators appeared in the coal market – mainly as the result of M&A activities with steel-makers, needed coking coal own sources. Currently 20 leaders provide 91% of Russia’s coal production – with SUEK providing 38% in thermal coal production and Evraz Group 31% in coking coal.

Since the early 2000s Russia benefits the status of coal net-exporter – buying 18.8 mt of Kazakh coal Russia exported 98 mt of coal in 2009. Russia became the world’s # 3 coal exporter (after Australia and Indonesia) – with approximately 11% in global coal trade.

Prior to 2009 Russia’s coal export was oriented mainly EU – with 73.4% share. But following market drop in Europe the western route of Russian coal export became less and less attractive. Meanwhile the demand in APAC continued to grow – even in crisis period; 2009 became the time when several Russian coal tycoons began to shift export interests from EU to Asia-Pacific.

Want to know more about Russia's coal export shift from EU to APAC as well as about M&A activities in thermal coal and investments in coal transportation infrastructure? Ignatov & Company Group presents a comprehensive analysis for Russia's coalmining market in 2009-2010-2012 in our new "Russian Coal Market 2009-2010-2012 - Brief Analysis" report.

At March 2010-2012 "World Coal" magazine has published an article "The Bear Looks East" written with Mr. Alexander Ignatov, our founder and president; this article contains brief analysis for Russia's coal market in 2009-2010-2012, including export shift issue.

Visit our "Coalmining in Russia" website in WWW.RUSSIANCOAL.COM where you can find much more data on the market - from recent statistics and analysis to a list of our information products available for online purchasing.

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