TURKEY GIVING A COAL THANKSGIVING TURKEY

Importing annually 33m Mt of hard coal, Turkey decided to impose a import duty on coal importers to “reduce the negative effects of imports on the Turkish economy”. According to the new law those exempt from the new duty are EU countries, members of the European Free Trade Association and a few other countries, mostly being coal importers. Among the whole, only Poland could be taken for a serious coal exporter. A gift for Polish producers?

The new tax adds 15 USD to each imported ton. With today’s prices rising trend, this could make a huge difference for Turkish power generation industry, importing coal mainly from Columbia (6.76m Mt), Russia (5.09m Mt) and South Africa (1.55m Mt).

In 2015, Poland shipped only 125k Mt of hard coal in that direction. The new Turkish duty opens new possibilities on that market, but will Polish producers step up and benefit from it? Only 2 month ago Polska Grupa Gornicza decided to stop all the long-distance sea export and focus on domestic and European (rail) markets. Now, their sales analysts will have to talk turkey and do some math.

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