Net imports of thermal coal in the EU fell to the lowest level in three decades in February and will continue to wane this summer, as a glut of natural gas and efforts to limit the spread of Covid-19 hinder any prospect of a significant recovery of demand in the region.
According to Eurostat, published this week, net imports of thermal coal among the member countries of the EU from countries outside the bloc, fell to 5.3 million tons, or 59 per cent in annual comparison to only 3.7 million tons in February.
the last time net imports were lower in December of 1988, when the European Union consisted of only 12 countries were imported 3.4 million tons of coal, reported in the Argus.
Latest data cover the current membership of the EU-27 and exclude the UK after her release from the unit at the end of January. UK customs data show that in February the country's imports amounted to about 60,000 tons.
a Sharp drop in imports in the beginning of 2020 is the result of many months of almost continuous decline of coal prices in Europe and record low coal generation and does not reflect any impact of recent measures to curb the spread of Covid-19 in Europe.
Daily assessment of physical prices Argus Amsterdam-Rotterdam-Antwerp (ARA) was, on average, less than $ 49 per ton in the first quarter, compared to 74 dollars a year earlier. Based on prevailing prices for gas and carbon in the beginning of 2020, the price of thermal coal would have to fall below 22,40 dollars per ton to make a solid fuel burning competitive compared to production using natural gas.
power Demand is showing signs of recovery, but are unlikely to return to seasonal norms, while measures of social distancing, continue to hinder economic growth. Rating Agency Moody's said earlier this month that the electricity demand in some key EU markets could decline at an annual rate of 5-9% this year due to the effects of the outbreak of coronavirus, which exceeds the reduction in electricity demand of 5-6% during the financial crisis of 2009.
coal Output in Germany, Spain, the UK and France may fall by 28% or the equivalent of 3.4 million tons of coal burned. These four countries imported a total of 16.6 million tons of thermal coal last summer and 41.8 million tons for the whole of 2019, which accounted for around half of total coal imports in the EU.
Weak demand for coal in the EU has severely affected the imports from Russia in February and may force exporters to more actively move into new markets this summer if demand continues to fall.
