The U.S. power coal market is facing many unfavorable factors

In recent years, the U.S. power coal has been facing many adverse factors, and the market prospects have been gloomy for a long time.

Last week, the European market continued to maintain the situation of oversupply, and spot transactions were scarce, which led to the continued decline of the price of the U.S. power coal market.

In Europe, the main market of power coal in the United States, despite the heat wave and hot weather since midsummer, the market continued to be bearish on the Atlantic coal market due to the persistent high stocks in three ports, namely, Amsterdam, Rotterdam and Antwerp. Natural gas, which is a substitute for each other to some extent, has seriously occupied the market share of coal since the first half of the year. Compared with coal, natural gas has the characteristics of cleanliness and low emission. In addition, natural gas has become a new favorite of thermal power plants due to its abundant supply and low price in the recent natural gas market.

The International Maritime coal market is still in a negative mood in the short term. In Asia, Japanese users lock in Changxie Coal; Chinese buyers shift more to buying coal from the domestic market and increasing the generation of natural gas and hydroelectric power; and South Korea imposes import tariffs on imported coal due to its earlier energy policy. In Europe, industrial production is sluggish and electricity consumption is declining.

At present, American exporters are beginning to target Asia and grab market share with Indonesia and Australia, the main coal suppliers in the Asian market.