critical-minerals-hub critical-minerals-hub critical-minerals-hub
The Coal Hub Logo
No Result
View All Result
  • Login
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Coal Consultants
    • Coal Industry Association
    • Coal Industry News
    • Coal Price & Market Information
    • Government Organisation
    • Think Tank
    • Coal Company
  • Other Hubs
    • EUROPEAN GAS HUB
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Cart / €0.00

No products in the cart.

  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Coal Consultants
    • Coal Industry Association
    • Coal Industry News
    • Coal Price & Market Information
    • Government Organisation
    • Think Tank
    • Coal Company
  • Other Hubs
    • EUROPEAN GAS HUB
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
The Coal Hub
No Result
View All Result
Home Coal Prices

Bullish API 2 streak persists

Editor by Editor
5 years ago
Reading Time: 2 mins read
EU coal prices
Share on FacebookShare on TwitterShare on Linkedin

(Montel) European coal prices rose to their highest levels in more than three months this week underpinned by supportive technical and related-market signals, higher freight rates, French nuclear outages and some limitations to supply.

RELATED POSTS

Kuzbass-production-4-months-2025

Coal production in Kuzbass down 4.9% in Jan-Apr 2025

7 days ago
Russian-coal-industry-losses-in-Q1-2025

Russian coal industry crisis intensifies, with losses in Q1 2025 exceeding 875 mio USD

7 days ago
World-coal-market

World coal market: brief overview

7 days ago

The fourth-quarter API 2 contract rose 1.3% on the week to USD 53.60/t, while the front year was a more modest 0.5% higher at USD 57.70/t, Ice Futures data showed.

On Thursday, the contracts hit their highest since late March, of USD 54.40/t and USD 58.70/t, respectively.

Montel’s head of technical analysis, Tom Hovik, said the Cal 21 API 2 contract would continue to gain ground this month.

“This product could test the quite important USD 58.70/t resistance level in the medium term, and if this gives way, one cannot rule out that the USD 62/t area will be seen at some point later in July.”

Despite the persisting oversupply situation, and relatively lacklustre demand, there remained some supportive fundamental factors, market participants said.

“The main outlook for API 2 prices is largely down to European electricity prices and the freight market,” said an analyst with a European coal trading firm.

“If electricity prices, and in particular German baseload ones, continue to climb then we could see room for API 2 to move up a bit,” he said.

He noted, however, gas remained the main contributor to thermal generation across Europe. “I don’t see any short-term scenario where that changes, due the abysmally low gas prices, but there is still some coal generation around the margins and low wind [coupled with] higher [power] demand can only help.”

Freight component
At the same time, freight rates have surged over the past month, with the Baltic Dry Index – a bellwether for global dry freight rates – more than tripling to 1,823 points.
“Freight rates are beginning to play a part in coal pricing again, as the significant jump in shipping costs is making some producers look to pass on some of these costs to end users,” the analyst said. He added, however, this was not a significant driver for the time being due to coal’s lingering disadvantage versus gas.

“But the increase in freight could see some marginal tonnes that would otherwise be for sale being held back as freight becomes prohibitive, helping the supply demand balance overall.”

Wayne Bryan, director of European gas research at Refinitiv, said the API 2 gains also reflected unusually low French nuclear generation levels, which TSO data showed at around 29 GW at the time of writing. “If the wind doesn’t blow and the sun doesn’t shine, you can’t be reliant on just gas,” he said.

France’s EDF this week announced several nuclear reactor outages, though it did revise up its capacity outlook for 2020 late on Thursday to 315-325 TWh, from 300 TWh previously.
A coal analyst with a European energy firm, meanwhile, said Russian supply would likely remain limited until exports via the port of Murmansk – which are currently delivered to the terminal via a temporary rail route – reach full capacity again in October.

Another coal analyst, with a trading firm, said while he also saw the aforementioned drivers playing a role over the coming weeks, there was also likely to be some genuine support from lower spot availability.

“The thing that is striking to me is that although coal demand has been awful, really very bad for consecutive years, the supply cuts – and consequent drop in coal exports – are also massive,” he said.

Source: Montel

Follow Montel on Twitter:

[tfws username=”montelnews” height=”700″ width=”350″ theme=”light” color=”#FAB81E” tweets=”2″ header=”yes” footer=”yes” borders=”yes” scrollbar=”yes” background=”yes”]


RELATED POSTS

Kuzbass-production-4-months-2025

Coal production in Kuzbass down 4.9% in Jan-Apr 2025

7 days ago
Russian-coal-industry-losses-in-Q1-2025

Russian coal industry crisis intensifies, with losses in Q1 2025 exceeding 875 mio USD

7 days ago
World-coal-market

World coal market: brief overview

7 days ago
Tags: API 2 coal contractcoal versus gasEuropean coal demandGerman baseload pricesMontel
Editor

Editor

Related Posts

Kuzbass-production-4-months-2025
Coal Demand

Coal production in Kuzbass down 4.9% in Jan-Apr 2025

7 days ago
Russian-coal-industry-losses-in-Q1-2025
Coal Demand

Russian coal industry crisis intensifies, with losses in Q1 2025 exceeding 875 mio USD

7 days ago
World-coal-market
Coal Demand

World coal market: brief overview

7 days ago
World-coal-market
Coal Demand

World coal market: brief overview

2 weeks ago
Measures-to-support-Russian-coal-industry
Coal Demand

Putin approves measures to support Russian coal industry

2 weeks ago
power-generation
Coal Demand

India’s coal fired generation surges in March

4 weeks ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Trending Posts

World-coal-market

World coal market: brief overview

May 26, 2025
power-generation

India’s coal fired generation surges in March

May 5, 2025
Measures-to-support-Russian-coal-industry

Putin approves measures to support Russian coal industry

May 19, 2025

Recent Post

Kuzbass-production-4-months-2025

Coal production in Kuzbass down 4.9% in Jan-Apr 2025

May 26, 2025
Russian-coal-industry-losses-in-Q1-2025

Russian coal industry crisis intensifies, with losses in Q1 2025 exceeding 875 mio USD

May 26, 2025
World-coal-market

World coal market: brief overview

May 26, 2025
steel-manufacturing

Coal used in steelmaking designated as a critical material

May 26, 2025
World-coal-market

World coal market: brief overview

May 19, 2025
Measures-to-support-Russian-coal-industry

Putin approves measures to support Russian coal industry

May 19, 2025

The Coal Hub is an online platform for sharing analysis and information about the global coal market  more info

Categories

  • Coal Market Outlook
  • Coal Trade
  • Met / Coking Coal
  • Coal Fired Generation
  • Coal Regions
  • Climate & Technology
  • Economic Impact
  • Petcoke

Recent Posts

Coal production in Kuzbass down 4.9% in Jan-Apr 2025

Russian coal industry crisis intensifies, with losses in Q1 2025 exceeding 875 mio USD

World coal market: brief overview

Energise your Monday!

Sign up to receive our weekly newsletter (each Monday) with new coal market reports, presentations & analysis.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

By signing up, I agree to our TOS and Privacy Policy.

© 2020 TheCoalHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Coal Consultants
    • Coal Industry Association
    • Coal Industry News
    • Coal Price & Market Information
    • Government Organisation
    • Think Tank
    • Coal Company
  • Other Hubs
    • EUROPEAN GAS HUB
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login

© 2020 TheCoalHub | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.