MOSCOW, November 9. /TASS/. The EU-imposed embargo on Russian coal effective from August 10 has not led to higher discounts on the commodity, the Center for Energy Development said in its October report.
"Furthermore, the embargo did not lead to an increase in Russian coal discounts, although they are still very substantial: 50% on the Asian market and almost 60% on the European market. The shipping price for Russian coal remained relatively stable in September-October, while global coal prices were on the decline amid the drop in LNG spot prices," experts noted.
Russian coal exports contracted by 7% at the end of September to 14.95 mln metric tons, and this is comparable to the figures of early 2020 during the pandemic period. Shipments from Baltic ports declined by 1.2 mln metric tons, as a direct consequence of the embargo that was introduced. Meanwhile, shipments from Southern ports moved upward somewhat but China and India, the top buyers of Russian coal, reduced their imports from Russia in September.
"This confirms that the main obstacle to the recovery of coal exports is not demand, but logistical difficulties caused by the inability to use bulk carriers with European insurance," the Center said.