UK coal purchase from US in Q1 increases

Saturday, 20 Aug 2011

Bloomberg reported that UK purchases of thermal coal from the US jumped in the first quarter as demand for the dirtier- burning fuel advanced and exporters took advantage of Britain’s ability to scrub sulfur dioxide from emissions.

According to Mr Nigel Yaxley, head of the Association of UK Coal Importers a lobby group whose members include the British units of EDF SA and EON AG, coal imports from the US advanced by more than four times partly because the fuel was discounted compared with better quality shipments from traditional markets such as Russia and Colombia.

Mr Yaxley said that “The import increase is price driven, because UK power stations are buying high-sulfur coal at discounted prices.”

According to analysts at Bloomberg New Energy Finance in London, lower European Union carbon-permit prices and a shift away from nuclear power in Germany will probably boost EU demand for coal.

(Sourced from Bloomberg)