Coal price in USA exceeds $100 per ton for the first time in 13 years

In the USA, coal prices topped $100 a ton for the first time since 2008, Bloomberg reports, Report informs citing Interfax.

Events in Ukraine have dramatically changed the international energy market, prompting buyers to seek replacements for Russian coal, which accounted for nearly 18% of global exports in 2020. At the same time, the recovery of the global economy after the COVID-19 pandemic is helping to increase demand for fuel, experts say.

Although US electricity producers are trying to reduce their use of coal, its consumption actually rose last year on the back of higher natural gas prices.

Coal from the central Appalachians rose 9% last week to $106.15 a ton, according to government data. This is the highest rate since the end of 2008. Prices in the Illinois Coal Basin rose to $109.55, breaking the $100 mark for the first time since 2005. The cost of coal in these coal-producing regions of the country is rising faster than in others because they have easier access to international markets.

US coal exports are up 23% in 2021 and are expected to increase by 3.3% this year as mining companies look to take advantage of record prices in global markets.