Australian thermal coal prices hit new six-year highs as a heatwave sweeping through the northern hemisphere triggered a surge in demand for coal-fired power to keep air conditioning running.
Coal cargo prices from Australia's Newcastle terminal were set at $ 121.75 per tonne, the highest since February 2012 and a third of their 2018 low set in April.
“Extreme heat waves in Asia and Europe are pushing electricity demand for industrial and residential cooling higher than usual at this time of year,” said one utility trader. “Coal reacts more strongly than natural gas because more reserve capacity of coal is activated,” he said.
Temperatures in key coal regions of North Asia and Europe hit record highs in July, and the heat wave, which lasted until August, will continue, weather services say.
Extreme heat waves also swept large parts of Europe, with temperatures in Spain and Portugal exceeding 40 degrees Celsius and even in Scandinavia, where temperatures reached over 30 degrees.
European utilities, especially in Germany, have turned to coal-fired power plants to fill some of the electricity gap.
Extreme heat in Asia and Europe raises coal prices
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Azovpromstal® 3 August 2018 г. 11:09 |
