European Coal Price Slump May Have Reached an End

Bloomberg reported that the slump in European coal prices — the longest in at least eight years — looks set to end on the back of falling imports from the United States and production cuts in Russia and Poland.

As quoted in the market news:

“If the European economy recovers and some producers decide to cut their output due to the weakness in the coal market, prices will pick up again, especially if U.S. exports drop,” said Barbara Lambrecht, an analyst at Commerzbank AG in Frankfurt who has covered commodities for six years. “Coal prices won’t rise to the skies. For that, supply on the market is too abundant.”

Click here to read the full Bloomberg report.