Thermal coal markets were a prominent beneficiary of Europe's power sector turmoil in 2022, with prices surging more than 250% through mid-March as utilities and trading firms scrambled to replace lost supplies of Russian natural gas with other fuels.
Benchmark European thermal coal prices remained close to historic highs throughout 2022 on sustained higher use across the continent, averaging roughly $285 per tonne for the year, compared with about $115 a tonne in 2021.
That clashes with the more bullish posture of coal markets in top coal consuming region Asia, which has been bracing for sharply higher coal use and purchases in 2023 as dominant coal consumer ChinaThe divergent tones of Europe's and Asia's coal markets are captured by the record-wide price spread between them.
Over the near term, such actions will likely narrow the arbitrage window by applying pressure to Asia's coal prices. European natural gas and coal markets became highly interconnected in 2022 as utilities and trading firms were forced to accommodate sharply lower expected supplies of pipelined Russian natural gas while competing for sharply higher volumes of thermal coal and other power-generating fuels.Both commodities scaled record price highs during the month following Russia's incursion into Ukraine, while gas prices pushed to further new heights in August as a heatwave cranked up air conditioner use.
Europe has averted any major cold snaps so far this winter, which has led to a historic swell in natural gas stockpiles that will struggle to accommodate any additional inflows.Yet gas inventories remain vulnerable to steep drawdowns should a late winter cold spell kick in just as use from industry starts to recover from the belt-tightening retrenchments seen across Europe in 2022.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Drone thermal imaging captures rare turtle laying eggs in ThailandThai marine conservation officials have used thermal imaging equipment mounted on a drone to capture footage of a leatherback sea turtle, the world's largest turtle species, coming to shore to lay eggs.
Read more »
Column: What I learned about myself at the Richard M. Nixon museumVisiting the Nixon museum, I knew I was entering an alternate universe where I’d have to reevaluate my beliefs. I decided to embrace that challenge.
Read more »
Amazon to Cut Ties With Jeremy Clarkson After His Column on Meghan Markle: ReportClarkson wrote in a Dec. 16 column for the U. K. Sun that he dreamt of “the day when she is made to parade naked through the streets of every town in Britain while the crowds chant, ‘Shame!’ and throw lumps of excrement at her.”
Read more »
Amazon Reportedly 'Likely to' Drop Jeremy Clarkson in Response to Markle ColumnClarkson would reportedly finish out currently planned seasons of Clarkson's Farm and The Grand Tour before being dropped by the streaming service.
Read more »
Column: Lincoln High's Norman Powell plays way into NBA's sixth-man award conversationPowell finds his offensive way with Clippers alongside Paul George and former SDSU superstar Kawhi Leonard
Read more »