Russian coal prices in Europe reach new highs

Spot thermal coal prices for NAR 6,000 kcal/kg fob Baltic Russian coal reached a six-year high last week of $93.44/t, tracking higher European values. The last time higher price was recorded at the end of March 2012 when Argus assessed fob Baltic at $93.50/t. The spot price for NAR 6,000 kcal/kg Russian thermal coal fines exported through Ukrainian and Russian Black Sea ports also rose significantly – by over $2/t on the week to $92/t.

European prices rose as coal supply in Europe declined after much tonnage was redirected to the Asian market chasing better prices there. Separately, European coal prices were recently supported by anticipation of healthy coal burn in Germany amid weaker renewable power output.