Russia’s invasion of Ukraine has sent coal markets into turmoil as large portions of Russia’s coal supply may not make it to market due to Western sanctions. While Storm Eunice temporarily brought the price of European energy down due to a spike in wind energy, demand for coal is now climbing again and coal prices are soaring. While Russian coal could still go to China, strict domestic price controls would force Russia to sell it at a major discount. Just as oil prices soared above $115 per barrel and European gas prices moved up to $60 per mmBtu, coal markets have been suffering through some turmoil of their own. Global coal prices surged some 30% in one week, primarily triggered by fears of Russia’s coal supply not hitting the market as several rounds of US/EU/UK sanctions made it complicated to arrange financial lines with Russian sellers. The Asian Newcastle […]

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