API2 Coal Prices Fall to Mid-May Low

European coal prices are extending recent losses with API 2 coal July futures at the lowest since 15 May amid seasonally low demand and high renewables output.

• Rotterdam Coal JUL 24 down 0.8% at 109.7 USD/MT
• API 2 coal prices for July have pulled back from a high of 127 $/mt at the start of the month to trade at the lowest since 15 May. On a front-month basis, prices fell to the lowest since 17 May today.
• European thermal coal imports averaged below 0.30m tons/week since the start of March, below the average of above 0.90m tons/week during the same time last year, Kpler data showed, cited by Montel.
• Seasonally low coal demand, higher solar PV output as well as robust wind output have weighed on prices, Alexis Ellender, dry bulk analyst at Kpler said.
• ARA coal inventories stood last week at 4.8m tons, the lowest in two years, Montel estimates showed.
• Looking forward, hard-coal output is unlikely to see any significant increases in the near term.
• Latest weather forecasts in NW Europe suggested cooler than average weather for the next week, unlikely to significantly support electric demand for cooling.
• Forecasts for renewables output suggested high solar PV output in the region, while nuclear availability in France remained broadly stable and in line with June expectations.
• Rhine river levels at the Kaub measuring point have further declined after recent flooding and stood at 4.37m on Monday, compared with highs of 6.51m on 4 June, WSA data showed.