European antipathy to coal has hit Russia

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www.vsyako.netPhoto: Sergei Karpukhin / Reuters

Coal prices, which Russia exports to the EU, fell in Europe, almost twice, down to the lowest values in 2016. Against this background, the Russian producers are trying to redirect the goods to the Asian market. About it writes “Kommersant”.

The cost of coal in the last three years in Europe and Asia grew, against which the Russian producers increased exports. In the period from 2015 to 2018, it grew by nearly 35 percent, up to 209,8 million tons.

This was the reason of growth of loading of cargo turnover on Russian Railways, as coal is the most popular goods and the main source of traffic growth. In 2017, the loading of coal grew by 9.1 percent, and in 2018 — by 4.6 percent. In some months it reached a record for the Railways of values.

At the end of last year prices began to decline sharply. The reasons for that are warm winter, the transition of power plants to natural gas, which is cheaper than coal, switching to renewable and cleaner sources of energy. In addition, the coal miners also hit the decline in exports to Ukraine by the decision of the Russian authorities to tighten supplies.

Against the background of falling prices on online in Europe traditional providers of Energougol in EU — Russia, Colombia, USA and South Africa — are trying to divert supplies to Asia. However, in the Asia-Pacific region, despite the continued high level of demand has relatively low price level.

According to analysts, in the coming years, the decline in imports in Europe will be offset by increased demand from India, Vietnam, Pakistan, Malaysia and other Asian countries. However, before Russian producers until the end of the year you need to survive the period of low prices established in Asia and the Pacific in the offseason, and this will not all players.

Video, photo All from Russia.

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