March 7 (Bloomberg) -- European coal for next year dropped for a fifth day, the longest losing streak in almost three weeks, as UBS AG estimated that European Union utilities need to close 30 percent of power capacity by 2017.
EU electricity producers will have to shutter 24 gigawatts of “mainly cashflow-positive capacity” to stabilize profits as surging renewable-energy output depresses power prices, Per Lekander, a Paris-based UBS analyst, said in an e-mailed report.
Thermal coal for delivery in 2014 to Amsterdam, Rotterdam or Antwerp fell as much as 0.4 percent to $95.60 a metric ton and traded at $95.75 at 12:43 p.m. London time. Today’s drop marks the first time since Feb. 15 that the price has declined five days in a row.
Bloomberg tracks broker data from ICAP Plc, GFI Group Inc., Marex Spectron Group Ltd., Credit Suisse Group AG, IHS McCloskey, Tradition Financial Services and Tullett Prebon Plc.
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