European Coal Futures Sink to $84.45 per MT

Reuters reported that API2 coal futures for 2014 delivery dropped below the “psychologically important” level of $85 per metric ton (MT) today, declining to $84.45 per MT. They are down about 17 percent since the start of 2013.

As quoted in the market news:

Coal derivatives have been one of the worst performing commodities this year, Reuters data shows.

Coal is the world’s most used fossil fuel for power generation. The price drops mean that coal is much more attractive for European power generation than gas, its main fossil fuel competitor.

The latest coal price drops extended a long lasting downward trend of almost 6 percent since the beginning of the month and more than 35 percent since spring 2011, when prices last peaked.

Click here to read the full Reuters report.