Downturn in coal market continues

Focus week 11: European coal prices are continuing to fall. Coal is experiencing increasing competition from gas, further weakening the already low demand.

Here and now

A single week of climbing electricity prices in the Nordic region was all we got, before the market started to fall again. Last week, the long-term contracts experienced price falls that could be attributed both to falling coal and gas prices and an improved hydro-balance. The immediate contracts in the forward market also fell, as the weather forecasts appear to agree that the mild weather will return at the end of this week. The Q2-19 contract ended the week with a fall of EUR 0.95/MWh and now costs EUR 40.15/MWh. The YR-20 contract has fallen by EUR 2.94/MWh and is now at EUR 35.46/MWh.

Read Focus here.