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Markets & Forecasts

Europe’s retreat from coal forces shifts in seaborne trade

Lower demand for coal in Europe means major suppliers are shipping more to Asia instead, potentially keeping a lid on price gains in the short term Lower demand for coal in Europe means major suppliers are shipping more to Asia instead, potentially keeping a lid on price gains in the short term.
By Alessandro Vitelli 24 September 2019 World / Global Markets 0 34612
The Staudinger black coal power plant in Grosskrotzenburg in Germany. (EP)

Europe has moved away from coal over the past 18 months amid falling gas prices, the rising cost of EU carbon allowances, a surge in power generation from renewable sources and the emergence of national policies to end the use of coal-fired power.

The shift is forcing coal suppliers that would have sold to the region to look for other buyers. But while Asia offers a healthy market for now, it may not remain that way.

Coal consumption by Europe’s power sector fell by around 9% in...