Updated Feb 7, 2023 03:15

Coal Market in Egypt

Market Overview
In , the Egyptian coal market increased by % to $, rising for the second consecutive year after two years of decline. Over the period under review, consumption posted tangible growth. Over the period under review, the market attained the peak level at $ in 2018; however, from 2019 to , consumption remained at a lower figure.

In value terms, coal production stood at $ in estimated in export price. Overall, production, however, recorded a relatively flat trend pattern. The growth pace was the most rapid in 2009 when the production volume increased by %. As a result, production attained the peak level of $. From 2010 to , production growth remained at a lower figure.


Consumption
In , consumption of coal increased by % to tons, rising for the second year in a row after two years of decline. Overall, consumption enjoyed measured growth. Over the period under review, consumption hit record highs in and is expected to retain growth in years to come.

The size of the coal market in Egypt soared to $ in , rising 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 enjoyed a moderate expansion. Over the period under review, the market reached the maximum level at $ in 2018; however, from 2019 to , consumption stood at a somewhat lower figure.


Consumption by Type
Coal other than lingite ( tons) constituted the product with the largest volume of consumption, comprising approx. % of total volume. Moreover, coal other than lingite exceeded the figures recorded for the second-largest type, lignite ( tons), more than tenfold.

From 2007 to , the average annual rate of growth in terms of the volume of coal other than lingite consumptions totaled +%.

In value terms, coal other than lingite ($) led the market, alone. The second position in the ranking was taken by lignite ($).

From 2007 to , the average annual growth rate of the value of coal other than lingite markets amounted to +%.


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
Coal market in Egypt consists almost entirely of imported products. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
Egypt 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.