With the upcoming heating season, many people are considering heating costs, especially in the context of coal prices. This year there is good news – prices of energy coal are beginning to fall. The article will discuss the current situation on the coal market, factors affecting price reductions and forecasts for the coming months.
The decrease in energy coal prices
According to the latest analyses prepared by Industrial improvement Agency and Freight Energy Exchange, prices of energy coal and coal for the heat marketplace fell in June 2024. Energy Coal recorded a decrease by 0.4%, while prices for the heat marketplace decreased by 0.9% compared to May 2024 .
Price indices of PSCMI
Two key indices are utilized to monitor the situation on the energy coal marketplace in Poland:
- PSCMI index1: It reflects coal prices for industrial and industrial energy.
- PSCMI2 Index: It concerns industrial and municipal heating plants.
The values expressed in these indices are the net price of coal on the wagon at the loading point, excluding excise duty, insurance costs and transportation costs.
Current index values
June 2024:
- PSCMI1 reached value PLN 479,98 per tonne, which means a decrease of 0.4% compared to May. This is besides 35% little than in June 2023.
- PSCMI2 fell by 0.9%, reaching a value PLN 586,52 per tonne, representing 35.7% little than a year earlier.
These declines point to dynamic changes in the coal market, which can benefit consumers in the upcoming heating season.
Situation in coal storage
In the retail coal market, the situation is besides promising. Halina Gierszewska, which runs the fuel depot in the Zachodniopomorskie Voivodeship, notes that although uncertainty about retail coal prices inactive exists, the current marketplace situation is simply a good forecast.
Imported coal
According to Halina Giersewska's account, coal from imports was collected in Polish ports, which is sold at prices 700-800 zł for a ton. This is much little than the prices observed in erstwhile years, which may propose further reductions in the retail market.
Why are coal prices falling?
The fall in energy coal prices can be attributed to respective factors:
- High supply: A large amount of coal is available on the market, both home and imported, which increases competition and leads to price reductions.
- Reduced demand: Prices are besides affected by a decline in request resulting from an expanding share of renewable energy sources and more efficient usage of energy in households and industry.
- International marketplace stability: The global price stabilisation of energy natural materials affects national coal prices, leading to a gradual simplification of their prices.
Forecasts for the upcoming heating season
The current energy coal marketplace situation is beneficial for consumers who can anticipate lower heating costs in the upcoming heating season. Although there is no certainty about the further evolution of prices, current trends indicate that low coal prices can proceed in the coming months.
The fall in energy coal and heat prices is good news for Polish households and companies preparing for the winter heating season. Thanks to advanced supply and stableness in global markets, coal prices have a chance to stay at a favourable level. To realize long-term trends, it is worth following current marketplace data and keeping up with information on prices and availability of natural material.
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