© Reuters US coal prices rise above $200 as US stocks rise across the board
US coal prices rose above $200 for the first time in history on Monday as the global energy crisis increased demand for coal, Zhitong Finance APP has learned. According to data released by the US Energy Information Administration (EIA) on Monday, October 3, the price of Central Appalachian coal in the United States rose to $204.95 per tonne in the week of September 30, the highest level since records began in 2005. • new heights.
Shares of major US coal companies closed higher across the board on Monday, driven by higher US coal prices. Arch Resources (ARCH.US) closed up 8.22%, CONSOL Energy (CEIX.US) closed up 7.18%, Peabody Energy (BTU.US) closed up 5.96%, SunCoke Energy (SXC.US) closed up 5.85 %, Warrior Met Coal (HCC.US) closed up 4.92%, Alpha Metallurgical (AMR.US) closed up 4.91% and Alliance Resources (ARLP.US) closed up 3.14%.
As the global economy recovers from the Covid-19 pandemic, demand for electricity is growing faster than coal and natural gas producers are increasing supply to power plants. The Russian-Ukrainian conflict that started at the end of February this year has reversed the energy market, together with the high temperature this summer, coal prices have risen further due to the imbalance between supply and demand.
While coal producers are going out to produce coal, they don’t have much room to increase capacity. In addition, bottlenecks in the supply chain mean that goods cannot be delivered even if more coal is produced. These factors have led to a sharp rise in coal prices in the United States, Europe and Asia.