As US coal producers increased exports to Europe, prices have dropped by 26% in a year and demand has risen by 3.3 %. Over the same period, demand for natural gas fell by 2.1%, the sharpest decrease since the beginning of the economic crisis in the Eurozone.
As reported by Bloomberg, “coal will continue to remain on the money in Europe because it’s more competitive to burn than gas”. “More and more of the coal to Europe will come from the U.S. where just the opposite is happening”, an analyst at Barclays PLC stated.
Europe’s increasing use of coal is based on profit margins climbing to a 2.5 year high for coal-burning power stations, according to data analysed by Bloomberg Industries.