LONDON: European physical coal prices declined on Monday afternoon, as a cut in Russian gas supplies to Ukraine failed to lift demand for coal.
Cargoes for delivery in July to the European ports of Amsterdam, Rotterdam and Antwerp (ARA) were down 65 cents to $72.50 a tonne, according to the GLOBALcoal trading platform.
The August ARA contract slid by 30 cents to $73.15 a tonne, while the September contract was 50 cents lower at $74.00 a tonne.
Earlier on Monday, Russian natural gas exporter Gazprom halted deliveries to Ukraine, marking the third such disruption over payments since 2006.
"We were expecting an impact on prices today after the news (of the gas supply cut) broke," a coal broker said.
Even though Russia had cut off all gas supplies to Ukraine, Russia said Ukraine should ensure that it lets Russian gas flow through international pipelines to Moscow's clients in the European Union.
Coal prices have been under pressure for several months due to a global oversupply of coal and weak energy demand in Europe due to a mild winter and spring.
Those issues continue to weigh on prices, traders said.
BP's annual statistical review on Monday showed that global coal consumption grew by 3 percent last year, below a 10-year average of 3.9 percent, but it was still the fastest-growing fossil fuel.
World coal production increased by 0.8 percent in 2013, its weakest growth since 2002, and global coal reserves are enough for 113 years of production at current rates, BP said.
Comments
Comments are closed for this article.