European Coal Prices Slump to a Record Low
- Demand has slumped globally, especially in top user China
- Regulations, strong dollar hurting coal miners in the U.S.
A bulldozer moves coal that will be burned to generate electricity at a power plant.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
European coal for 2016 dropped below $50 a metric ton for the first time amid slumping demand from China, the biggest consumer.
Prices have declined 26 percent so far in 2015, heading for a fifth straight year of drops in the benchmark year-ahead contract, according to broker data compiled by Bloomberg. The slump came as lackluster global demand with diminished prospects for growth, including a 35 percent drop in Chinese coal imports from January to July, combined with plenty of available low-cost supply, according to Societe Generale SA.