Russian coal does not give more discounts

Coal prices in Turkey have increased. The reason was the increase in prices for the freight of ships and the refusal of Russian suppliers to provide discounts.

"The cost of energy coal 6000 kcal per kg in Turkey on CIF terms (the exporter bears all costs for the delivery of goods to the port of shipment, its insurance, loading) by mid-April for the first time since July 2023 exceeded the European index. During the week of April 13-17, quotes on the Turkish market fell by 3% to $ 109.6 per ton. The European index (CIF ARA) fell by 7.7% to $ 96.2 per ton, having lost the entire "military premium" due to lower gas and oil prices. This was the lowest value in the last four months,"Kommersant writes with reference to the NEFT Research review.

His analysts believe that the high cost of freight and the refusal of Russian suppliers to provide discounts are affected. Thus, the cost of coal in the ports of the south and north-west of Russia remains stable: on the basis of FOB Baltic for the week of April 13-17, coal fell by 0.3% to $ 74 per ton, FOB Taman quotes increased by 0.2% to $ 85.7 per ton.

"Trading without discounts in Turkey has become possible due to locally tight demand, expensive freight and a limited choice of alternative suppliers, but this is more of a temporary window than a new norm," Oleg Yemelchenkov, Junior Director for Corporate Ratings at Expert RA agency, told the publication.

Russian exporters have a tactical opportunity to increase supplies a little, but the growth potential is limited by the level of demand, competition and the high cost of logistics, the expert believes.

Pavel Gamov, an expert on the mining and metallurgical industry at the Stolypin Institute of Growth Economics, explained to Kommersant that the possibility of selling without discounts to the Turkish market is associated with a reduction in supplies from Colombia and South Africa. Russia's share in Turkish coal imports in 2026 reached 65.6%.

Freedom Finance Global analyst Vladimir Chernov added that the growth of shipments to Turkey is being held back by a decrease in coal production in Russia, high cost of transportation…

Turkey can only temporarily become a more marginal destination, especially for southern ports, but this does not solve the systemic problems of the industry, the expert believes.