Updated Feb 7, 2023 03:07

Coal Market in Turkey

Market Overview
In , the Turkish coal market increased by % to $, rising for the fourth consecutive year after two years of decline. Over the period under review, consumption recorded a resilient increase. Over the period under review, the market hit record highs in and is expected to retain growth in the immediate term.

In value terms, coal production rose slightly to $ in estimated in export price. Overall, production enjoyed a temperate increase. The pace of growth was the most pronounced in 2016 when the production volume increased by % against the previous year. Coal production peaked at $ in ; however, from to , production stood at a somewhat lower figure.


Consumption
In , consumption of coal increased by % to tons, rising for the ninth consecutive year after two years of decline. Over the period under review, consumption posted a remarkable increase. As a result, consumption attained the peak volume and is likely to continue growth in the immediate term.

The revenue of the coal market in Turkey skyrocketed to $ in , surging by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption saw a prominent increase. Coal consumption peaked in and is expected to retain growth in the near future.


Consumption by Type
Coal other than lingite ( tons) and lignite ( tons) were the main products of coal consumption in Turkey.

From 2007 to , the biggest increases were recorded for coal other than lingite (with a CAGR of +%).

In value terms, coal other than lingite ($) and lignite ($) appeared to be the products with the highest levels of market value in .

Coal other than lingite, with a CAGR of +%, saw the highest growth rate of market size among the main consumed products over the period under review.


Market Forecast
The coal market is expected to start a downward consumption trend over the next eight-year period. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the eight-year period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Driven by a growing demand, the share of imports in total supply in Turkey increased significantly over the last fifteen-year period (from % to %).


Trade Balance
Turkey remains a net importer of coal; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.