Russian exporters may face problems due to cheaper coal as they have to sell it at a significant discount. In this respect to write Based on data from Vedomosti, the London ICE exchange and market experts.
The cost of steam coal futures delivered to the ports of Amsterdam, Rotterdam and Antwerp fell to $98 per ton in June. This is a record low price since January 2022, and fuel prices in Europe have dropped 47% since the start of the year. At the same time, market experts think that exporters from Russia will have problems due to low prices. We’re talking about the fact that suppliers now have to sell coal at a discount of at least 30%. At the same time, discounts even reached 60% last year. Then the fuel from Russia was sold at $200 per ton, and the world price was $400.
Analysts think European coal prices will depend on the weather. For example, energy consumption will increase in very hot weather and as a result, power plants will need more fuel. Then coal prices may rise. Also, the cost of coal will be affected by very cold weather and the volume of coal reserves before the next heating season.
Market experts agree that coal supplies from Russia to other countries are at par with prices of $80 per ton. Profit is already starting at $100 per ton. However, such indicators significantly complicate the competitiveness of the offer and the attractiveness of the supply.
24 May China Daily WroteSiberian Coal Energy Company (SUEK) will triple the volume of coal supply to China to 20 million tons in 2023. Also, as stated in SUEK, the company will discuss exporting 50 million tons of coal per year to China in the near future.