

Market News
Demand for Hard Coal in Russia Went Up
In 2007-2011, demand for hard coal in Russia went up by 9 %, i.e. from 253 million tons to 276 million tons. Demand decrease by 4 % compared to the previous years was registered only in 2009. In 2012-2016, according to BusinesStat estimates, demand for hard coal in Russia will continue to rise and bu 2016 it will have reached 337 million tons.
Hard coal in Russia is distributed mostly in the domestic market, the largest export share was noticed in 2010, and equaled 39 % of the total demand volume. In 2009, decrease by 11 % in the sales volume of hard coal compared to 2008 was registered. In 2007-2011, the largest sales volume was noticed in the sales of hard coal. In this period its share in the sales mix in Russia fluctuated between 69 % in 2007 and 77 % in 2011.
In 2007-2011, the cost volume of the hard coal market went up by 96 %, from 129 billion rubles to 252 billion rubles. Decrease in the cost volume of the market turnover by 25 % compared to the previous years was registered only in 2009. Drop in the cost turnover of the hard coal market was conditioned by the simultaneous decrease in the actual market size and in the average wholesale price.
The Volume of Coal Output and Consumption is Expected to Increase.
Demand for coal on the Russian market has been recently reducing. It is connected with the interfuel competition between coal and gas as well as with the global financial crisis. From 2006 to 2010 the volume of coal sales decreased by 21.2 million tons and amounted to 207.3 million tons. Because of the diminution in demand in 2009 domestic enterprises had to reduce the coal production volume by 8.3% comparing to the previous year. In 2010 due to the economic recovery the domestic enterprises began to increase the volume of coal output. At year-end the volume of coal output increased by 5.2% and equaled 316.9 million tons.
In a long term, on condition of further recovery of the economic and coal - consuming sectors, the volume of coal output and consumption is expected to increase. According to BusinesStat estimates, in 2011-2015 the volume of domestic sales of coal will increase by 3.7% per annum, on the average. By 2015 the volume of coal sales in Russia will have equalled 248.3 million tons.





