Prices for Russian steam coal in Europe dropped in early April by 11% compared to the end of March amid weakening demand for fuel and availability of high stocks from energy companies. The decline in industrial production in the region due to pandemic coronavirus will lead to a further drop in prices, fear market participants.
the value of the Russian steam coal by calorific value of 6 000 kcal/kg, which is exported to Europe, declined 3 April to $5,36/t compared to last week, to $48,31/t (fob Baltic sea ports). The proposal of the Russian coal market is redundant, because the ports and mining enterprises of Russia yet does not restrict shipment of products, according to market participants.
the Demand for solid fuels in the Asia-Pacific region is also reduced, so prices for Russian steam coal calorific value of 6,000 kcal/kg, supplied for the Asia market, decreased by us $1.37/ton compared to last week, to $66,69/t fob Vostochny.
But despite the fall in world prices, the profitability of Russian exports of coal increased significantly in March – April due to the weakening of the national currency and the reduction of tariffs on a railway transport in the direction North-West and South ports of Russia.
Netback Russian steam coal calorific value of 6,000 kcal/kg for deliveries from Kuzbass abroad through the port of Ust-Luga at the end of last week increased by almost three times compared to the end of February, reaching $15,31/tonne (fca Kuzbass). At the same time, in ruble terms, the value of export alternatives has increased over the same period to 1 190 roubles per tonne (fca Kuzbass) with 371 RUB/tonne (fca Kuzbass).
