Home » Business » Coal Prices and Oversupply: A Look at the Current Market Situation

Coal Prices and Oversupply: A Look at the Current Market Situation

The beginning of August is the time when I am already looking for coal. In winter, I need to heat a medium-sized single-family house. Last year, I paid about PLN 10,000 for 5 tons of eco-pea coal Skarbek. zlotys, which is about 2 thousand. PLN per ton. It was still on sale though before the war and price increases, the same coal cost PLN 700-800 – says Mr. Adrian from Wrocław in an interview with money.pl.

“There is an excess of coal. Sales are stalled”

At the fuel depots they say that there is no shortage of coal at present.

People are still coming and asking for an offer. They don’t attack squads. You can see that they are waiting, maybe they hope that it will be cheaper, although the price of PLN 2,100 per ton of walnut is not bad these days, a coal seller from Wrocław tells us.

What’s next for coal prices? – This question is probably not answered by anyone at the moment. It’s a lottery like everything these days, prices can change from day to day, adds the fuel depot owner.

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See also: Grain cannot be exported because there is coal in the ports. “You could think about it for months”

There is too much coal. I have a sale. This is what the state has done for us. I offer the raw material at a price of PLN 1,700 to PLN 2,000 per ton, depending on the type, and in the store of Polska Grupa Górnicza, individual customers can buy coal from PLN 1,100, it is difficult to compete – says the owner of a fuel depot near Warsaw.

Mr. Józef, the owner of a fuel depot from Poznań, speaks in a similar tone.

Last year I was over 85,000 behind. zloty. I used to have as much as 800 tons on the yard, now I import them on a regular basis and I have no more than 70 tons. This is the situation with coal, Eldorado, when selling coal, maybe someone has it, but certainly not us. The company is going to close, how will it continue – admits the owner of the warehouse from Poznań in an interview with money.pl. He only sells walnut charcoal. A ton costs PLN 2,000.

Meanwhile, in the PGG store, we will pay from PLN 1,100 to PLN 1,650 per ton of coal. It all depends on the type of raw material purchased.

“Coal floods the commune and floods us”

The Association of Polish Cities conducted a survey among local governments. The organization received responses from 221 municipalities. 138 of them contain a total of 10,614 tons of unsold coal (on average 77 tons per municipality), for which local governments paid about PLN 16 million. 24 of these cities have more than 100 tons of coal, of which 8 – more than 300 tons.

Due to the fact that the deadline for the sale of the raw material by local governments has expired, the organization asked Prime Minister Mateusz Morawiecki in an official letter to request that state distributors collect this coal from cities. They also want their money back.

There is, however, an urgent need to supplement communal budgets for the implementation of current tasksincluding those related to public education and the repayment of local government debt.

“Conducting further sales at prices lower than the purchase price will deepen the financial gap in communal budgets” – adds ZMP.

Deputy Minister of State Assets Karol Rabenda informed this week that local governments had already received an interpretation of the regulations, agreed with the Ministry of Finance and the National Council of Audit Chambers, which allows the remaining coal to be classified as municipal property and municipalities can do what they want with ite.g. to subordinate institutions, such as schools or libraries.

Coal floods the communes and floods us. He reads the minister’s answer as the arrogance of the authorities. The minister probably forgot about the fact that this coal was bought by the communes not for their own needs, but only for the needs of the population, at the request of the government. Now the minister says: you have and “do what you want”, because it is yours and it is communal – says Leszek Świątlski, director of the office of the Association of Rural Communities of the Republic of Poland in an interview with money.pl.

Agnieszka Gergont, spokeswoman for the Bolesławiec City Hall, in an interview with money.pl, says that the city does not have any public institution that would be heated with a coal stove.

– We are considering the possibility of providing coal vouchers to people who use this form of assistance at the Municipal Social Welfare Centre. So far, they have received money to buy fuel. Now, through vouchers, they will receive coal that is in stock – says the spokeswoman. AND Bolesławiec still has nearly 200 tons of coal to dispose of.

“Dramatic oversupply of fine coal”

PGG, the largest domestic coal producer, assures that this season the consumption of coal in Poland will be lower than the average from previous years.

– The estimated demand from households in the coming season is 6-6.5 million tons, while in previous years it was at the level of 8 million tons. PGG alone will deliver 3.5 million tonsother domestic producers: Tauron Wydobycie, Węglokoks Kraj and Bogdanka will supply approx. 1.5 million, plus stocks and imports by private entities – assessed Adam Gorszanów, Vice-President of PGG.

According to him, the lower demand can be explained by the fact that last winter was warm and many households stockpiled coal.

– Last year we had a shopping panic from the end of winter, from the outbreak of war in Ukraine, there was also speculation when prices reached 4,000. PLN per ton, which is completely unrelated to the costs, regardless of whether import or domestic extraction – Gorszanów enumerated.

After last year’s crazy purchases by state-owned companies, there is a dramatic oversupply of fine coal on the market. There is much less coarse, quality coal. If there is a problem on the market, it will be with the availability of this coal – says Łukasz Horbacz, president of the Polish Coal Chamber of Commerce, in an interview with money.pl.

Bloomberg, citing data from the energy think tank Instrat, reports that Coal inventories rose 83% in May. by 10.8 million tons compared to the previous year.

“Coal has long played an important political role in Poland, where 75,000 people are employed as miners and millions of households depend on this fuel for heating. Aging coal-fired power plants provide about 70 percent of the country’s electricity,” Bloomberg concludes. and adds that the topic of coal may be one of the motives of the upcoming election campaign.

Malwina Gadawa, journalist and publisher of money.pl

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2023-08-04 16:22:10
#Coal #flooded #Poland #sale #stands

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