Hungary: Lignite Market 2024

Lignite Market Size in Hungary

The Hungarian lignite market declined slightly to $X in 2022, dropping by -4.7% against the previous year. In general, consumption, however, saw a perceptible reduction. Lignite consumption peaked at $X in 2017; however, from 2018 to 2022, consumption failed to regain momentum.

Lignite Production in Hungary

In value terms, lignite production dropped to $X in 2022 estimated in export price. Overall, production continues to indicate a pronounced curtailment. The most prominent rate of growth was recorded in 2016 when the production volume increased by 39% against the previous year. Over the period under review, production reached the maximum level at $X in 2017; however, from 2018 to 2022, production failed to regain momentum.

Lignite Exports

Exports from Hungary

In 2022, approx. X tons of lignites were exported from Hungary; which is down by -20.4% against 2021 figures. In general, exports saw a relatively flat trend pattern. The pace of growth appeared the most rapid in 2013 with an increase of 221%. Over the period under review, the exports attained the maximum at X tons in 2015; however, from 2016 to 2022, the exports failed to regain momentum.

In value terms, lignite exports contracted to $X in 2022. Over the period under review, exports saw a noticeable descent. The growth pace was the most rapid in 2015 when exports increased by 202%. As a result, the exports reached the peak of $X. From 2016 to 2022, the growth of the exports remained at a lower figure.

Exports by Country

Slovakia (X tons) was the main destination for lignite exports from Hungary, accounting for a 63% share of total exports. Moreover, lignite exports to Slovakia exceeded the volume sent to the second major destination, Ukraine (X tons), threefold. The third position in this ranking was taken by North Macedonia (X tons), with a 5.8% share.

From 2012 to 2022, the average annual growth rate of volume to Slovakia amounted to -3.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Ukraine (+46.7% per year) and North Macedonia (+1,587.3% per year).

In value terms, Slovakia ($X) remains the key foreign market for lignites exports from Hungary, comprising 45% of total exports. The second position in the ranking was taken by Ukraine ($X), with a 20% share of total exports. It was followed by Bosnia and Herzegovina, with a 12% share.

From 2012 to 2022, the average annual rate of growth in terms of value to Slovakia stood at -9.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Ukraine (+31.6% per year) and Bosnia and Herzegovina (-20.7% per year).

Export Prices by Country

In 2022, the average lignite export price amounted to $X per ton, surging by 7.4% against the previous year. Over the period under review, the export price, however, saw a perceptible setback. The pace of growth appeared the most rapid in 2017 an increase of 244%. As a result, the export price reached the peak level of $X per ton. From 2018 to 2022, the average export prices failed to regain momentum.

There were significant differences in the average prices for the major overseas markets. In 2022, amid the top suppliers, the country with the highest price was Bosnia and Herzegovina ($X per ton), while the average price for exports to Slovakia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Bosnia and Herzegovina (+2.9%), while the prices for the other major destinations experienced a decline.

Lignite Imports

Imports into Hungary

After three years of decline, purchases abroad of lignites increased by 93% to X tons in 2022. In general, imports, however, saw a perceptible downturn. Imports peaked at X tons in 2018; however, from 2019 to 2022, imports stood at a somewhat lower figure.

In value terms, lignite imports skyrocketed to $X in 2022. Over the period under review, imports, however, recorded a mild descent. Imports peaked at $X in 2012; however, from 2013 to 2022, imports failed to regain momentum.

Imports by Country

The Czech Republic (X tons), Slovakia (X tons) and Germany (X tons) were the main suppliers of lignite imports to Hungary, together comprising 95% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Slovakia (with a CAGR of +33.9%), while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest lignite suppliers to Hungary were the Czech Republic ($X), Slovakia ($X) and Germany ($X), together comprising 95% of total imports.

In terms of the main suppliers, Slovakia, with a CAGR of +43.5%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average lignite import price stood at $X per ton in 2022, surging by 5.6% against the previous year. Over the period under review, import price indicated notable growth from 2012 to 2022: its price increased at an average annual rate of +2.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, lignite import price increased by +53.2% against 2019 indices. The pace of growth appeared the most rapid in 2020 an increase of 27% against the previous year. The import price peaked in 2022 and is expected to retain growth in the immediate term.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Bosnia and Herzegovina ($X per ton), while the price for Slovakia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Slovakia (+7.3%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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