European Coal Sinks to New Low on Credit Suisse Forecast

Bloomberg reported that the price of coal for 2014 delivery to Amsterdam-Rotterdam-Antwerp dropped to $88 per metric ton, its lowest price since the contract started trading in January 2010, after Credit Suisse Group AG (NYSE:CS) cut its forecast for the region’s fuel and electricity costs.

As quoted in the market news:

European power will average 37.5 euros per megawatt-hour in 2016, down from 46.60 euros forecast in December, Zoltan Fekete and Vincent Gilles said in a research note today. They cut their outlook amid expectations that stagnant power demand won’t be matched by reduced capacity, and on lowered price forecasts for carbon emission permits and coal.

European coal will average $85 a ton this year compared with a previous forecast of $108.20, the bank said. In 2014, the cost will average $92 a ton from $114.10 predicted in December.

Click here to read the full Bloomberg report.