Sharp increase in API2 Cal 2023 prices to $210/t on reports that the EU could ban Russian coal imports which represents around two thirds of total EU thermal coal imports.
This comes at a time of significant coal supply tightness in Europe.
Indeed, coal-fired power generation rebounded in Europe over the past few months to compensate for falling nuclear availability in France and scarce gas supply
ARA coal stocks sit a record lows for this time of year.
Europe coal prices were already trading at an unsual premium to Pacific coal prices before the news and this premium could widen further in the short-term to trigger additional coal demand destruction in Asia.
Source: Julien Hoarau, EnergyScan
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