A looming ban on Russian coal imports by the European Union will add to supply pressure that’s sent prices of the fossil fuel hurtling to a record, according to a key Australian producer.
(Bloomberg) — A looming ban on Russian coal imports by the European Union will add to supply pressure that’s sent prices of the fossil fuel hurtling to a record, according to a key Australian producer.
Global supply constraints and strong demand pushed Asia’s benchmark Newcastle thermal coal to a quarterly record of $377 a ton in the three months through June, Whitehaven Coal Ltd. said Monday in a statement. The company expects to report a jump in earnings to A$3 billion ($2 billion) from A$204.5 million when it next month reports financial-year results.
The European ban that takes effect next month “is expected to tighten further the supply of high quality thermal coal,” Sydney-based Whitehaven said in its statement. “We continue to view thermal coal prices as well supported for 2022 and into 2023.”
Japan and other Group of Seven nations have also pledged to add curbs on Russian purchases as soon as this year. That’s adding pressure on global markets just as demand for the dirtiest fossil fuel booms, with tight supplies across the energy complex.
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Coal consumers in northeast Asia are seeking cargoes to replenish stockpiles before the summer, while non-traditional buyers of Australia cargoes, including in Europe, are adding to demand, Whitehaven said.