© Archyde.com. U.S. coal prices rise above $200 as U.S. stocks rise across the board
U.S. coal prices rose above $200 for the first time in history on Monday as the global energy crisis pushed up demand for coal, Zhitong Finance APP has learned. According to data released by the U.S. Energy Information Administration (EIA) on Monday, October 3, the spot price of Central Appalachian coal in the United States rose to $204.95 per ton in the week of September 30, the highest level since records began in 2005. new highs.
Shares of major U.S. coal companies closed higher across the board on Monday, driven by higher U.S. coal prices. Arch Resources (ARCH.US) closed up 8.22%, CONSOL Energy (CEIX.US) closed up 7.18%, Peabody Energy (BTU.US) closed up 5.96%, SunCoke Energy (SXC.US) closed up 5.85%, Warrior Met Coal (HCC.US) closed up 4.92%, Alpha Metallurgical (AMR.US) closed up 4.91% and Alliance Resources (ARLP.US) closed up 3.14%.
As the global economy recovers from the Covid-19 pandemic, electricity demand is growing faster than coal and natural gas producers are increasing supply to power plants. The Russian-Ukrainian conflict that broke out at the end of February this year has upended the energy market. Coupled with the hot weather this summer, coal prices have risen further due to the imbalance between supply and demand.
While coal producers are going all out to produce coal, they have little room to increase capacity. In addition, supply chain bottlenecks mean that deliveries cannot be made even if more coal is produced. These factors have led to a sharp rise in coal prices in the United States, Europe and Asia.