After the collapse of the railway bridge near Murmansk, which caused the termination of commercial sea port and shipments of coal prices in Europe are at a critically low for suppliers level went up sharply. According to Argus, they jumped more than 20% compared with the end of last week. How long will the local deficit is not clear. To restore the rail link plan by the end of the month to build a new bridge — by October. According to analysts, much of the local coal price spike will not help: they’re still low, and potential for growth a little.The collapse of the railway bridge near Murmansk, to cut the intense freight traffic in this direction has already been reflected in the cost of thermal coal in Europe. As announced on 3 June, the Argus, after the accident, the cost of thermal coal in the beginning of the week increased by 21% compared to the end of may. So, the price of thermal coal calorific value of 6,000 kcal/kg in North-West Europe June 2, jumped up to $46,52 per tonne (CIF Amsterdam — Rotterdam — Antwerp), compared to $38,29 per tonne (CIF ARA) at the end of last week.The bridge collapsed on 1 June (see “Kommersant” on June 2), cutting off the way to Murmansk, including the Murmansk commercial sea port (MITI) SUEK and EuroChem, handled large volumes of coal SUEK (17.6 million tons in 2019). “The suspension of traffic entails not only the overflow of warehouses, shippers, and reducing the intensity of production of works of Murmansk commercial seaport up to a full stop of the enterprise activity”,— warned in the port, adding that, according to experts, failure in the supply of goods by rail will result in downtime of the enterprise and more than 80% of the 1.3 million staff working port.The head of Russian Railways Oleg Belozerov said that to restore the movement is planned before June 23 to build a new bridge by early October. While the restoration works, said RZD, plans to build a 5.7 km new path, utilizing a section of embankment under construction branch to Lawno.The Argus reports that in June Russian companies, mainly SUEK planned to ship in the ISCP about 1.2 million tons of coal, representing more than 20% of the monthly volume of supplies of Russian coal through the ports of the North-West.The trend is unlikely to develop, he said, because the price of gas, the main competitor of coal in power generation, remains very low. Also competitive advantage of the Russian coal industry destroys the strengthening of the ruble. And if the correct information about that part of the coal that was previously distributed to Murmansk, is redirected to the East, this may create additional pressure on prices in the Asian market that may reverse course to hit the Europe market and give to become stronger quotes.In this case, said Mr. hudlow if Americans under giving��eniem low prices will massively go to the European market, then after a month and a half can begin the rebound. “As with oil, I guess we are waiting for two or three months of very low prices, and when weak will leave the market, prices will begin to rise,— said the expert.— I hope that one of our major coal companies will be able to utilize it.”Natalia Skorlygina
