The price of Russian coal in Europe is going down

At the end of April the price of Russian thermal coal in Europe decreased by 17.7% compared to the end of March. It is reported by Argus.media.  

The fall in prices is directly related to the spread of coronavirus, as demand for raw materials is reduced.

The cost of Russian thermal coal with a calorific value of 6,000 kcal/kg, which is exported to European countries, on April 24 decreased by $2.46/t compared to the middle of this month, to $44.17/t (fob ports of the Baltic Sea).

European countries are reducing coal imports due to lower utilisation of coal-fired power plants in the region due to a drop in industrial production. The agency reports that in April, electricity generation at coal-fired TPPs in the UK, France, Spain and Germany dropped to a total of 2.5 GW compared to 6.7 GW in 2019.

Thermal coal with a calorific value of 6,000 kcal/kg in Northwest Europe fell to $39.72/t at the end of last week (cif ARA).

Coal is also falling in price due to competition with gas-fired power plants, whose costs are declining amid record-low gas prices.

Prices of Russian coal in Asia are also declining. The cost of Russian coal over the past week decreased by almost 10% - to $54.13/t.

Earlier it was reported that the Cabinet of Ministers of Ukraine levied a duty on the import of coal from Russia of almost all grades, except for anthracite, bituminous and coking coal.

Tags: The Cabinet of Ministers, gas, contracts, hydrocarbon production, coal mining, EU, coal, energy market, Азия, TPP, коронавирус, RF, foreign affairs, coal imports, coal exports, CHP, price, agreement, volumes, power system balance, energy sector, quarantine, pandemic, COVID-19, decline in production

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