The cost of thermal coal in Asia has fallen to its lowest level in almost three years.
Prices for thermal coal in the world continue to fall, and in Asia, Russia’s main market, they have fallen to their lowest level in almost three years. About this with reference to data from the ICE exchange write “Vedomosti”.
Australian coal futures, the basis for pricing in the Asia-Pacific region, fell below $117 a tonne on January 30. The last time such a picture was observed was at the end of May 2021. In Europe, fuel costs are also falling. Futures for June delivery to the ports of Amsterdam, Rotterdam and Antwerp were at $94.2 per ton, and on January 25 they were even lower at $92.3. The last time coal was cheaper was in June 2023.
The cost of coal is falling following natural gas, which is also at multi-month lows, which is uncharacteristic for the middle of winter. In Asia, gas is trading at $330-340 per thousand cubic meters, while in Europe it dropped below $300. Stable supplies of liquefied natural gas (LNG) and a high level of filling of storage facilities make it possible with a high degree of probability to exclude a rise in prices, which also affects the demand for coal.
Prices for Russian coal are formed taking into account general regional prices. As calculated by the Price Index Center, deliveries from the Baltic ports at the beginning of January were priced at $71 (steam coal with a calorific value of 6,000 kcal/kg). At the same time, according to FG Finam, fuel exports from Russia remain profitable at prices above $80 per ton.
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Deliveries through the Far East still remain profitable; at the beginning of the year, coal was sold at a price of $100 per ton. Finam analyst Nikolai Dudchenko noted that the cost of Russian coal primarily depends on the state of the Chinese economy. If it grows, then demand, and with it prices, will increase. Problems with LNG supplies may also have an impact.
Earlier it was reported that the Ministry of Finance is going to increase the mineral extraction tax (MET) for the coal industry, although the exact size of the increase is still unknown. This initiative is associated with an attempt to find new sources of income to fill the budget.
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