Southeast Asia's Coal Trade to Surge Despite Global Decline

Southeast Asian nations like Vietnam and the Philippines are poised to increase coal trade and consumption, with imports expected to rise significantly by 2030. Despite China's peak demand, these countries are becoming key markets for coal exporters. Increased coal usage is driven by power generation needs and industrial demands.

Southeast Asian countries like Vietnam and the Philippines are set to amplify their coal trade and consumption within the coming decade, according to industry officials. This is occurring even as the demand from leading consumer China approaches its peak.

The Indonesian Coal Miners Association (ICMA) forecasts that coal imports by China and India will peak by 2025, thereby capping growth in the global seaborne trade of this pollutant. However, ICMA's chairman, Priyadi, revealed at the Coaltrans Asia conference that in countries such as Vietnam and the Philippines, annual coal imports are expected to grow by around 3% annually, reaching 170.9 million metric tons by 2030, up from 140.9 million tons in 2023.

Vietnam, recognized as Southeast Asia's fastest-growing economy, represents a particularly promising market for coal power generation. Traders and industry officials highlighted at the conference how Vietnam's coal imports could hit 66 million tons by the year's end, compared to 47.8 million tons in 2023, per analytics firm Kpler. The peak import is anticipated to be 86 million tons by 2035, with 70-75% allocated for electricity consumption.

(With inputs from agencies.)