Coal export prices in the Far East ports and the European side of Russia began to stabilize. In this respect writer “Kommersant” with reference to the data obtained.
The gap between thermal coal prices in Far Eastern ports and the European part of the Russian Federation is narrowing against the backdrop of falling coal prices in Asia. In addition, spreads increased sharply after the start of the special operation in Ukraine and further increased after the entry into force of the European Union (EU) embargo on Russian coal in August 2022. But now the situation is slowly starting to change.
After the sanctions were imposed, coal companies began to divert their supplies to other countries: Morocco, Turkey, Israel, and also to India and China via the Suez Canal. Publishing sources on the market noted that the profitability of such material is about 5%. Deliveries from southern ports also continue to increase. For example, coal shipments through Taman have increased over the past year. This trend is already observed at the beginning of 2023. At the same time, the interlocutor of the newspaper pointed out that deliveries via Taman are more profitable than the ports of the Baltic and Barents Sea.
Market experts agree that there is a slight increase in prices towards the Baltic at the moment, indicating a low growth in demand in Europe. However, it is too early to talk about the profitability of coal supply in this direction.
Referring to the Argus Russian coal report, Kommersant at the end of January WroteThat Russian coal companies increased their supplies to South Korea by 24% in 2022 due to discounts.
Source: Gazeta
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