According to the news of the Milli Gazete, coal prices started to rise as the deterioration in supply added new risks to the global energy energy sector, which is already in crisis.
According to the index compiled by OPIS, coal loaded in the Australian port of Newcastle set a new all-time record at $436.71 per tonne in the spot market. In this context, prices have tripled.
$460 TON TON
Forward prices were also at record levels. Newcastle October futures rose 5 percent on the first trading day of the week to $463.75 a tonne on ICE Futures Europe, reaching the highest level in data dating back to January 2016. Europe’s reference coal price is also trading at record levels.
LAST BROKEN A RECORD IN 2011
The La Nina hurricanes, which took place in 2010-11 and lasted for a few months, caused damage to coal mines and railways in Australia’s New South Wales and Queenslan states due to heavy rainfall and caused production to drop by 20 to 30 percent. Because of this, coal prices broke records.
CUTTING PRICES CAN INCREASE
Morgan Stanley analysts, including Marius van Straaten, said in a passing note that “any serious cut in Australian coal shipments could push prices of high-heat coal to new highs.”
DEMAND RISES
A strong recovery in coal demand was seen as a result of the contraction in global gas supply as some buyers avoided fuel imports from Russia and investment in other sources, including renewables, in many countries slowed down.
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