MOSCOW, October 10. /TASS/. The world’s coal market is notable for the significant volatility at present, Russian Deputy Prime Minister Alexander Novak said in the article for the Energy Policy magazine.
"The last two years have become fairly challenging for the coal industry. The sector faced a range of challenges, including economic consequences of the pandemic, the drive for accelerated energy transition and re-orientation of logistical chains in view of abandonment of supplies from Russia by certain countries. The global coal market features high volatility at present," Novak said.
Prices of energy resources increased dramatically by late summer - early fall 2021 amid the accelerated recovery of the global economy after the pandemic and higher demand, the official said. Coal prices on global markets soared above $400 per metric ton, Novak added.
At the same, the need to refocus coal supplies after the embargo on Russian coal import was introduced by a number of countries creates uncertainty on the market. The share of Russia, Indonesia and Australia is about 80% in the global coal export and absence of one of leading producers leads to higher demand and the price hike.
"That is why consumers in the EU and in other countries have to urgently search for new coal suppliers presently, breaking the established balance and rupturing stable logistical chains, which entails extra financial costs of transportation, greater demand, chaos on the market and the price surge," Novak said.