Europe to Im****t U.S. Coal
Peter Glover
Jan. 07, 2008
European buyers are set to sign the first long-term supply deal with
U.S. coal producers. The E.U. currently im****ts most of its coal, mainly
from South Africa, Russia, and Australia, despite its own large
reserves. But the booming global economy and resultant demand for coal
has changed the global market. China is a net coal im****ter for the
first time. Australian coal producers are ex****ting as much as possible,
but can't keep up with demand. South Africa, too, is diverting much of
its coal to the Asian market. As a result, benchmark prices in Australia
and South Africa reached record levels during November, forcing Europe
to look elsewhere.
A weak dollar and a strong euro have combined to make America the most
attractive option, with 27 percent of proven global reserves. According
to a recent on-line article by Elliot Gue in The Market Oracle, a metric
ton of coal in Europe costs more than $130, whereas in the U.S. it's
around $50. Even after adding $50 per ton in trans****t costs, profit
margins are huge. Between January and September 2007, U.S. coal ex****ts
to Europe rose to 11.4 million tons, 15 percent over the same period in
2006. Expect that trend to continue for a while.
--
Warmest Regards
Bonzo
"The question scientists should now be asking is not how much it will
warm over the next 50 to 100 years, but why has it warmed so little
during the major carbon dioxide buildup?" Patrick J. Michaels,
Environmental Scientist , University of Virginia
|
