Industrial consumption of coal in cement and steel production is also a significant market for the global coal industry. The international coal market is very competitive - and offers security through diversity of supply. The market is characterised by its flexibility and ability to adapt to change, which has allowed for the entry of Indonesia, Colombia and Venezuela to share in the growth. The USA, with its large production capability, acts as a swing supplier. Coking coal, used as both chemical reductant and fuel in making iron and steel, has grown at slower rates more in line with the global industrial growth.
Most steam coal is used in power generation.
The growth in the Asia-Pacific coal market has been most marked, and is of course supported by the rapid growth in demand for electricity. This reflects both population growth and an increase in demand from very low per capita levels of consumption. Political risks are growing - they have grown over the past few years and this trend is likely to continue. This is due to the shallow depth of the surface reserves where the methane has not been trapped to the same extent - and the fact that most of these coals are lower in rank and therefore do not contain as much gas. Techniques for removing methane from underground mines have historically been developed for safety reasons.