Global coal prices fall in June
According to a report by the Industrial Development Agency, price declines were predominant on international coal markets in June. This was due to a decrease in orders from China and India. Heavy rains in Asia have led to a significant increase in hydropower generation, reducing demand for coal.
5:53 PM EDT, July 5, 2024
"In the international coal market in June, sentiments were markedly different from those that dominated in May. Throughout the reviewed month, a downward trend emerged in the main spot markets for high-energy coal," the report stated.
IDA reported that demand for spot cargoes in June was weak in both the Atlantic region and the Asia-Pacific region.
"Moreover, greater revitalization of Asian demand in the spot markets is expected with the end of the summer monsoon and, consequently, the cessation of heavy rains. These already started in April in southern China, resulting in a significant increase in hydropower generation in the country," the report added.
Additionally, as reported by Reuters in June, China is preparing for even more rainfall in July and August as the "wet phase" of the East Asian monsoon occurs in the country.
"Due to the intensifying circulation of the summer monsoon, there has also been a decline in interest in spot offers from India, the world's second-largest coal importer after China," the report noted.
