Future Use
Met coal demand set to remain strong for decades to come
2040 and beyond
Metallurgical coal demand is expected to stay strong in the coming decades, with 2040 demand projected to be just under 1000 mt. New supply will be critical to meeting this demand, as current mines will reach their end of life or see production declines.
Seaborne coal supply expected to meet demand
Seaborne (transported or travelling by sea) coal demand is expected to rise 0.5% annually to 2050, at which, it is expected to make up 43% of total steelmaking coal supply. This rising seaborn demand is a significant opportunity for Canada to develop our met coal resources, and if we don’t, the United States, Russia, Australia and other seaborne coal providers will meet this demand.
Steel demand to grow significantly
Steel demand to be strong
Global steel demand is expected to surge to nearly 2.6 billion tonnes annually by 2050. With significant investments in new blast furnaces across Asia—both under construction and in planning stages—and the continued operation of over 600 coal-based or coal-integrated blast furnaces worldwide for decades to come, metallurgical coal will remain essential to meeting global steel demand.
There are hundreds of facilities that use steelmaking coal
Around the world there are hundreds of facilities that rely on met coal to produce the steel that we rely on for our every day lives. While not all the above facilities will remain online in the coming decades—most will be—and many more coal fed blast furnaces are being built. It is very unlikely that most of these will be retrofitted, or converted to hydrogen. That means met coal will play a critical role in ensuring these facilities can meet the growing the steel demand to 2050.