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Demand and Supply of Coal Of Australia In International Market

   

Added on  2021-05-31

10 Pages1721 Words407 Views
Running head: Economics For BusinessEconomics for businessName of the universityName of the studentAuthor Note

1Economics for BusinessExecutive Summary:This report has intended to analyse the demand and supply of coal of Australia ininternational market. The country is one of the largest producing and exporting countries ofcoal all over the world. However, some importing countries as China and Korea are reducingtheir consumption of coal for which price of this natural resource in international market havedecreased. This report has analysed this phenomenon with the help of demand and supplyconcept of economics.

2Economics for BusinessIntroduction:In almost every state of Australia, especially in New South Wales, Queensland andVictoria, coal is mined. Among total amount of coal mined, the country has exported 75%worldwide, especially in Eastern Asia (Martinus, Sigler, Searle and Tonts 2015). Rest of theamount is used for electricity generation. The country has remained the largest exporter ofthis mining resource in 2015, through exporting 33% of international exports (Halawa et al.2018). Moreover, Australia has ranked as the fourth largest producer of anthracite bycontributing 6.6% of global production among which, 77% have been exported in othercountries (Industry.gov.au. 2018). Major exporting countries of this concerned country areJapan, China, Korea, India and Taiwan and so on. Outline of the article:Hence, this report has intended to analyse the demand and supply of this naturalresource of Australia in recent years, based on newspaper article. According to the Guardian,an international newspaper, export market of Australia, reading coal, is going to decline innear future. Consequently, the price of thermal coal can reduce, which in turn can reduce theamount of profit of Australia’s coal producing companies (Slezak 2018). According to thisnewspaper report, South Korea, Taiwan and Japan together import 30% of the world’s totalexported thermal coal among which, 70% amount are from Australia. According to theAustralian projections, the country may increase its international export of coal by 8.7%within 2022 (Industry.gov.au. 2018). However, based on the Institute for Energy Economicsand Financial Analysis (IEEFA), this exporting market of coal is going to decrease due tofalling demand from two largest buyers of coal, which are, China and India. Both countrieshave forecasted to reduce imports of coal after reaching their optimal level of consumption(Rosewarne 2016). In addition to this, Japan, Taiwan and South Korea have also decided to

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