But up to now, this global market has been little understood. The Evolution of a Global Market also describes key features of the coal industry in leading producing countries and comments on national coal industries undergoing restructuring. Particular focus is given to coal policies and prospects in China and India. The report has already earned praise from leading coal market analysts and been welcomed by reviewers in the coal industry. Stable Supply and Prices World coal prices have declined in both real and nominal terms over the last 20 years as productivity has improved.
Market mechanisms act to keep international coal prices low and stable.
Price increases are limited by the capacity of U.S. producers to enter the market when prices rise. Coal reserves are widely distributed and the existence of several major exporters ensures stable supply. The scope for expansion of exports from countries with low-cost reserves and the existence of potential new exporters tend to restrain prices in the long term. If exporting countries wish to retain market share, they will face continuing pressure to contain costs. The world coal industry and coal trade have undergone dramatic change, but market mechanisms have worked well.