POLISH STEAM COAL PRICES IN OCTOBER

The three main international coal price markers are still falling. DES ARA prices were decreasing at a slowest pace, mainly because of increased interest from European consumers for Colombian coal, which they expected to be shipped to EU in significantly smaller amounts (restored on 15th October night-time ban on Fenoco coal railway; lifted a week ago by Colombian tribunal).

As a result of a major labor unions strike, on 4th October South African mines ceased all work and RB marker dropped by almost 2 USD. Dramatic situation in Australia: local producers held all the investments and reduced costs to the limit, yet still the prices fell by almost 5 USD and reached its lowest level since 2007. Optimistic news coming from Japan, South Korea and Taiwan, where greater demand will increase Australian export.

October in Poland is a traditional time when heating period starts, but rather warm weather led PSCMI2 prices to slight fall. On a contrary, prices of steam coal sold to power producers increased a little, but because of USD exchange rates, the PSCMI1 trend line follows other markers (compare our new subsections: PRICE INDICES IN PLN and PRICE INDICES IN USD).

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