Mongolian coal export performance in January and key influencing factors

Over the past few decades, Mongolia has seen a significant transformation in its economy, shifting from an agricultural base to one dominated by mining. In 2000, the mining sector accounted for just 5.4% of the nation's economy, whereas today, it constitutes approximately 30%. In recent years, mining has accounted for about 90% of total exports and 70 percent of foreign direct investment. 

However, this heavy reliance on the mining sector makes Mongolia's economy vulnerable to fluctuations in global commodity prices and external economic conditions. Notable examples include the global commodity price downturn in 2015-2016 and the economic disruptions caused by border closures during the COVID-19 pandemic in 2020.

Despite the volume of coal exports maintaining its 2023 level and reaching a historic high in 2024, export revenues fell by 1.3% due to declining coal market prices. The sluggish economic activity in China, ongoing uncertainty in the real estate and steel markets, and high coal inventories among buyers all contributed to the decrease in unit prices. As of January 2025, the average unit price of coal had dropped by 29.2% compared to the same period in the previous year.

The significant decrease in both coal and copper exports, along with falling prices, marked a challenging start for Mongolia's foreign trade in 2025. Total exports declined by 19.3%, with coal exports accounting for a 28.0 percentage point negative impact and copper exports contributing a 3.4 percentage point decrease.

Эх сурвалж :  www.sxcoal.com