European coal market had a tough first half, imports fell by an unprecedented 40%

Coal imports into the European Union and the United Kingdom fell by nearly 40 % year-on-year in the first half of this year. Hard coal and lignite production also declined significantly in these countries. Detailed data on the decline in coal imports and production come from statistics by the EURACOAL association.

In the first half of 2020, which was marked primarily by the coronavirus pandemic, there was an unprecedented drop in coal imports into Europe. According to EURACOAL statistics, hard coal imports fell from 72.8 to 44.2 million tonnes, or by around 40 % year-on-year.

Overall, the coal market experienced one of the worst half-years in history, with similarly poor results also evident in statistics for European hard coal and lignite production. Lignite production was nearly 30 % lower (falling from 159.2 to 112.7 million tonnes), while hard coal production was 16 % lower.

One reason is undoubtedly the coronavirus pandemic, which reduced electricity consumption across European countries, where coal is still widely used for power generation.

Another reason is the fall in commodity prices in the first half of 2020, particularly for natural gas, which is now often a more economically advantageous fuel thanks to its lower emissions per MWh of electricity generated (after accounting for emissions allowance costs).

The decline did not spare Czechia

One million tonnes of hard coal were mined in Czechia, i.e. around one-third less than in the same period last year. Moreover, for the first time, less hard coal was mined than was imported into the country (coal imports in the first half amounted to around 1.5 million tonnes).

The decline in production in Czechia also affected lignite. Compared with last year, one-fifth less lignite was mined in Czechia (a decline from 19.1 to 15.3 million tonnes). With lower production, electricity generation from both types of coal also declined – by 13 % from hard coal and by 20 % from lignite.

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