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Coal prices rise even though winter is over. All because of the war in the Middle East

Spring is a time for many people using coal furnaces to replenish stocks after winter. Usually this involved savings, because “black gold” was typically cheaper than before the next winter. But not this time. In some stores the price of coal not only did not fall, it actually rose.

Coal prices rise even though winter is over. All because of the war in the Middle East
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  1. Not everyone raised prices
    1. Why is coal getting more expensive?

      Such a place is the store of the Polish Mining Group, where the price of coal in April increased by 50 PLN per ton. For Karolinka and Pieklorz coal both in bags and loose you now have to pay 1450 PLN. In March it was 1400 PLN. What is the justification for the price increase especially at this time? The company does not explain it.

      The only proposal that PGG has is installment sales, which is supposed to be a magnet for customers. Those who want to take advantage of it must hurry, because this promotion will last only until April 30. And that is not the only bad news. Installment sales also have restrictions. In this way you can buy the raw material for a maximum of 2,000 PLN, which means it can be only slightly more than a ton, which, looking at how harsh the winter was, does not seem like a large amount, because the need to replenish stocks is certainly greater. Moreover, the customer cannot spread this amount over more than 5 installments.

      Read also: Coal may return to the game. Experts point to the technology China is developing

      Not everyone raised prices

      Not everyone followed PGG’s lead. Since March the South Coal Corporation has not changed its prices. Groszek Sobolewski is still sold loose for 1180 PLN per ton, and in bags for 1270 PLN. Groszek Jaret plus costs 1110 PLN per ton loose and 1210 PLN bagged. Kostka still costs 1170 PLN, and orzech from 1100 to 1110 PLN.

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      Why is coal getting more expensive?

      It turns out that the war in the Middle East also reflects on coal prices, although it does not directly affect it. All because of the blockade of the Strait of Hormuz and the rising natural gas price that cannot flow into Europe from that direction. Recall that this route carries almost 30% of the world’s LPG demand.

      Because of the war in Iran and the blockade of the transport route, gas on the Dutch exchange already cost up to 62 euros per megawatt hour. Meanwhile the price fell to almost 50 euros, but no one can predict whether it will rise again.

      The worst part of all this is that there are no signs on the horizon that could indicate that the conflict is heading towards an end, even though the American president Donald Trump claims so.

      In the ARA ports, the European benchmark for coal, you have to pay almost 120 dollars per ton of “black gold”. And this is not the highest price in recent days. In mid‑March the price was over 137 dollars. It has not been this expensive since 2023.

      If the war continues, the next winter, which is still far away, may turn out to be very expensive. Not only coal, but also ETS fees are rising. In mid‑March the cost of emitting one ton of CO2 was just under 64 euros, and now the amount has exceeded 70 euros. This may not be the end yet. Higher fees mean higher prices that everyone who still uses coal furnaces will have to bear. Although, looking at what is happening with prices, the next winter may be expensive regardless of what kind of furnace heats homes or apartments.

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      See also: Trump returns with tariffs. 100‑percent tariff rate will hit a key sector

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