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Coal prices in Europe have broken a 20-year high

To date, the price of coal in Europe has increased to such values that it has broken a 23-year-high. The rise in price was due to the fact that the cost of natural gas has increased, and there is a shortage of coal in European markets, the Argus agency reports.

In just one week from September 27 to October 1, a ton of coal increased in price by 16.5%, reaching $232.2 per ton, thereby breaking the 2008 record by 6%. The high demand for coal has led to the fact that European consumers have begun to compete with Asian buyers, who also feel an urgent need for solid fuel. At the same time, suppliers do not have time to increase the volume of supplies, which is why coal reserves in seaports have reached 4 million tons. This is the minimum for the last five years, according to the agency's analysts.

In turn, European producers generate energy by burning coal, as this is a more profitable way than using gas turbine power plants, where the price of gas has already reached another record. Now a thousand cubic meters of gas costs more than $1200.

In addition, in early October, German power plants and the Bergkamen-A plant ran out of coal. As a result, the electricity producer Steag stopped their work.

The situation with coal is also difficult in China. Thus, due to the closure of coal mines in order to achieve environmental goals to reduce harmful emissions, most of the provinces in the country switched to electricity saving mode. The work of the largest petrochemical enterprises has also been stopped.

Earlier, David Blackmon, in an article for Forbes magazine, noted that a record increase in gas prices in the world can provoke the transition of most thermal power plants to oil or coal, which will increase the cost of these resources.

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