The price of Russian coal in Europe has doubled over the summer

18.08.2021       

Export prices for Russian thermal coal in Europe have almost doubled since May, reaching $137 per ton. Quotations are pushed up by the rising price of gas, which is why coal is once again becoming an attractive fuel for some European power plants. The shortage of energy coal in Asia also contributes to the growth of world prices: Indonesia reduces exports due to quarantines, and South Africa — because of the riots. The domestic price of coal in Russia is also growing, but the coal industry, unlike metallurgists, will apparently avoid an increase in the tax burden.

The price of thermal coal in Europe has received strong support from rising gas prices, whose quotes have been steadily hitting historical records in recent weeks. According to the Metal Expert agency, world coal prices have increased by more than 60% since May. In the western direction, the export price for Russian coal on the basis of 6000 kcal/kg increased from $74 in May to $137 on the FOB basis of the Baltic ports, in the eastern — from $96 to $146 FOB basis Far East ports. In the domestic market of the country, grade D coal, which is the main one for energy, has risen in price from 2.1 thousand to 3.15 thousand rubles. per ton.

Platts writes that lignite was the main fuel for generation in Germany in early August, given that that production from renewable sources has dropped sharply due to weaker-than-usual winds. The agency notes that the coal-fired generation margin was €12.24 per MWh as of August 6, compared to the deeply negative margin of gas-fired generation (minus €13.77 MWh). Platts believes that under current conditions, coal will displace gas from generation use where it is technologically possible. further Kommersant