Coal prices in Europe have climbed to their highest level in a decade, to $135 per tonne. Limited supply of raw materials and increased use of electricity amid heat waves in several EU countries have increased coal demand.
South African coal prices continued to rise above 120 USD/ton in the context of limited supply of raw materials to the market. On 13 July 2021, civil protests in South Africa, resulted in the complete suspension of the port of Richards Bay and forced the railway operator Transnet to declare force majeure. On 14 July 2021, shipments from the port of Richards Bay resumed, but in limited mode due to strict security measures. According to experts, restrictions on coal transport by rail and exports from the port will remain until the end of the month due to the unstable situation in the country. The Port of Richards Bay is scheduled to undergo rail maintenance from July 20-26, 2021. Richards Bay’s coal reserves are reduced to 3.3 million tons.
The price of domestically produced NAR 5500 kcal/kg coal at Qinhuangdao port is still at 150-152 USD/ton. Limited thermal coal supplies in China’s domestic market and growing electricity demand have supported prices. On July 11, 2021, Henan province suspended coal shipments due to flooded railways. Authorities expect electricity consumption to increase as in many parts of China the average daily temperature exceeds 37 degrees.
Australia’s thermal coal price fell to $145/ton. However, experts predict that Australian coal prices may increase due to the shortage of high-energy coal in the Asia-Pacific market.
The suspension of some mines due to the epidemic situation in southern Indonesia reduced the volume of coal production and exports, supporting the coal price to reach $102/ton.
Seasonal demand for Australian coking coal from smelters in the Asia-Pacific region, amid regional coke import demand, has positively impacted Australian coking coal prices. at 210 USD/ton.
Source: thecoalhub.com
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