Global coal prices plunged after one of the world's top 10 producers planned to reduce its coal production capacity and close coal-fired power plants. Based on Refinitiv data, on Tuesday trading (3/9/2024) the ICE Newscastle benchmark coal price fell 2% at the level of US$ 142.1 per ton. The closure broke the strengthening of coal prices for two consecutive days.
The collapse in coal prices on Tuesday was caused by Germany's plan to become the world's ninth largest coal producer by 2023, which is expected to see its hard coal capacity decline by around 27% by 2027 according to BNA (The Federal Network Agency Germany). In 2030, hard coal capacity in the power market should drop to 8 GW or lower to be in line with the country's plan to phase out hard coal production and lignite-fired power plants by the end of 2038.
The BNA has also offered operators of hard coal and small lignite power plants the opportunity to receive financial compensation for early withdrawal from coal-fired power plants by 2023. For this, the regulator held a total of seven tender rounds covering 10.9 GW (Giga Watt) of coal-fired power plant closures.
Source : www.cnbcindonesia.com
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