Domestic coal for the energy sector was cheaper in the eleventh month of 2021 than a year ago, and coal for heating – more expensive.
On international markets, November last year was a month of decline in the prices of thermal coal, which in the Western European ARA ports (Amsterdam, Rotterdam, Antwerp) fell by 36.5 percent in relation to October. – however, they were still almost 180 percent. higher than last year.
The Katowice branch of the Industrial Development Agency, which monitors the hard coal market and the situation in the Polish mining industry, announced on Monday the values reached in last November’s indices showing the situation on the domestic steam coal market.
The latest data show that in the eleventh month of 2021, Polish coal for the energy sector was on average by 7.6 percent. cheaper than in the same month a year earlier, while with regard to coal for heating, the average increase in the index value year on year was 12.6%.
The PSCMI1 index (Polish Steam Coal Market Index) expresses coal prices for the so-called professional and industrial power engineering (for electricity production), while the PSCMI2 index – for industrial and municipal heating plants (for heat generation).
In November last year, the average monthly value of the coal price index for the energy sector (PSCMI1) amounted to PLN 237.41 per ton, compared with PLN 246.37 per ton in October and PLN 245.17 per ton in September. In terms of energy obtained from coal, in November it was PLN 11.02 per gigajoule of energy, compared to PLN 11.34 per gigajoule a month earlier.
Coal price index for heating (PSCMI2) reached PLN 342.95 per ton in November, compared with PLN 320.29 per ton in October and PLN 309.72 per ton in September. In terms of energy obtained from coal, in November it was PLN 13.93 per gigajoule of energy compared to PLN 12.96 a month earlier.
Domestic coal prices, which are mainly the result of direct agreements between producers and customers, do not reflect the prices observed in the international markets in recent months. Taking into account the conditions of ARA ports, the value of Polish price indices in November last year amounted to USD 67.91 per ton of coal for the energy sector and USD 85.84 per ton of coal for heating, well below the market prices in ARA ports.
Polish Power Coal Market Indexes are a group of price indices for benchmark steam coal produced by domestic producers and sold on the domestic energy market and the domestic heat market. The agency calculates them together with the Polish Power Exchange.
The indices are based on monthly ex-post data and express the hard coal sales price in a quality adjusted to the needs of customers. The value expressed in the indices is the net price of coal “on the wagon” at the loading point – excluding excise duty, insurance and delivery costs.
On Monday, the Katowice branch of ARP also presented data on the volume of domestic coal extraction and sales in November last year, when the mines produced 4.6 million tons of coal (compared to over 4.8 million tons a year earlier), and sold approx. 5.2 million tonnes (against over 5.1 million tonnes in November 2020).
Coal stocks on heaps at the end of November 2021 decreased from over 6.3 million tonnes a year earlier to around 2.5 million tonnes now.
According to experts, the specificity of the Polish economy is that the prices are negotiated by representatives of state-owned mining companies and state-owned energy companies.