Coal for northwest Europe next year has traded at a discount to the fuel in South Africa since Jan. 4, the longest period it has cost less since at least 2007, broker data compiled by Bloomberg show. The switch comes as European consumption is set to shrink further amid policies to reduce carbon emissions while Asian demand shields South African prices, said Diana Bacila, an analyst in Oslo at Nena AS. “The situation is a confirmation of the new normal, in which Asia is becoming the demand hub instead of Europe,” she said.
Before it's here, it's on the Bloomberg Terminal. LEARN MORE