China triggers major fall in coal market

Focus week 43: The Chinese government was no longer willing to quietly watch the rising coal prices and has therefore ordered an increase in Chinese coal production. This has triggered a sharp price fall, including in Europe.

Here and now

The price falls in the Nordic forward market continued last week, before the prices climbed again on the back of the drier weather forecasts on Monday. When the market closed on Monday, the Q1-22 contract cost EUR 67.65/MWh, virtually unchanged from last week. The YR-22 contract is also largely at the same level as last week, now costing EUR 38.53/MWh. Nevertheless, the area prices have fallen in the most densely populated areas of the Nordic region, and the overall electricity prices in most price areas are now lower than they were a week ago.

Read Focus here.