Opposition Russian media have drawn attention to the fact that the port warehouses in the aggressor country of the Russian Federation have sharply increased their coal loading. It is worth noting that all this is happening against the backdrop of a deep crisis in the coal industry, which has resulted from the loss of the European export market.
Points of attention
- The oversupply problem is expected to persist until the end of the year unless there is a global increase in coal prices to make export deliveries profitable.
- Experts suggest that resolving the oversupply issue and increasing exports require a restoration of balance in demand, improvement in export demand for Russian coal, and resolution of logistical difficulties.
A coal crisis has begun in Russia
According to open data, almost 50 million tons of products have accumulated at the warehouses.
What is important to understand is that this is actually 25% of all exports last year.
In key ports of the aggressor country, coal reserves exceed the average monthly figures by almost a quarter.
This year's reduction in turnover (coal) indicates a decrease in demand or problems with exports, which is leading to the accumulation of stocks. Until the balance is restored, the problem will persist, — one of the terminal management companies told reporters.
In addition, it is noted that excess coal stocks are observed among large producers or traders whose logistical or commercial chains are under pressure.
The oversupply problem is expected to persist at least until the end of this year, unless the situation with falling export demand for Russian coal improves and logistical difficulties are resolved.
According to experts, in order to free up warehouses and increase exports, a global increase in coal prices is necessary — only this can make export deliveries profitable.
