Recent Price Developments in International Coal Trade

摘要

Thermal coal prices in Northwest Europe fell at the end of 2011, as a result of the US shale gas revolution. An increase in shale gas production in the United States led to low natural gas prices, which subsequently crowded out coal in the US electricity sector and forced US thermal coal producers to look for other markets. In Europe, this resulted in an oversupply of coal, which led prices to fall from over USD 130/tonne (t) in March 2011 to below USD 85/t in May 2012. Despite markedly increased US exports, the coal industry in the United States saw several mines close down, raising the question whether current US free on board (FOB) prices are sustainable.