POLISH HARD COAL MINING RESULTS: H1 2016

Half a million tons of unsold coal was moved to the piles in June, which was the worst month of all 2016 when it comes for sales. Naturally, it could be justified by the end of heating season and decreased demand. After first six months of current year, coal stocked on piles accounted for 5.2m Mt. Luckily for the coal producers, most of it is already sold with prepayments.

In H1 of 2016 Polish hard coal sector produced 34.3 Mt, which was only a 100k Mt less than in the previous year, with increased YOY sales (34.5m MT in H1 2016, 34.4 in H1 2015). In June alone production was at the same level as it was last year, but sales decreased by 500.000 Mt YOY with a level of 5.3m Mt.

Speaking of sales: in the first half of 2016 the industry recorded the best result in April (6.5m Mt), with January taking 2nd place (6.1m Mt). Unfortunately, stable level of sales will not allow coal producers to keep a stable level of income: average steam coal price in H1 2016 decreased by 35.50 PLN/Mt (234.18 PLN/Mt in H1 2015, 198.69 PLN/Mt in H1 2016).

Since the beginning of the year, employment decreased by 4.3k miners and by the end of June accounted for 87.8k people.

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