The price of coal in the EU is set to drop significantly in 2019, writes Bloomberg.
Sales prices on the fossil energy source climbed throughout most of 2018, where one ton cost approximately USD 100 or EUR 88 in October. Prices have since dropped by 13 percent in the region and many market spectators expect that tendency to continue throughout 2019.
The forecast decline is primarily driven by lower demand in the EU and China. In Europe, the primary factor is political decisions to limit or phase out coal consumption. Conversely, prognoses about slowing growth in China are putting a damper on Asian importers' willingness to buy. Meanwhile, major Indian coal miners are also expected to maintain or increase current production.
The prognosis is based on figures from Bloomberg Intelligence, and European coal prices are expected to drop by 10 percent in total from the current level to approximately USD 76.5 per ton.
English Edit: Ida Jacobsen