Earlier this month, the International Energy Agency predicted the effects of the COVID-19 virus would see thermal coal demand decline worldwide by 8%, the biggest drop since the Second World War.
Seaborne thermal coal prices this year have also fallen by about 20%, again due to declining demand as factories and offices stayed closed, meaning a substantial reduction in power demand.
The above graph published by market insider on May 28 2020, clearly shows a decline in prices due to poor global demand.
With China set to impose restrictions on Coal Import to promote the use of domestic coal, no one can predict what is to come regarding export demand for Richards Bay Coal.
There's has been a lot of pressure on South Africa to move to cleaner energy sources, but the country is not quite ready for this major shift in years to come.
South Africa is one of the largest emitters of Carbon in the world and the entire local infrastructure is built to accommodate coal as the primary energy source.
Domestic prices for coal remain stable while demand is expected to grow as the nationwide lockdown restrictions ease.
There is no better time to begin procurement for energy sources.
Kayoo Group is an independent coal trading house based in Johannesburg. We service a diverse client base that consist of privately owned businesses, medium to large corporations & trading houses who leverage our expertise to guarantee safe and reliable supply channels for Coal products
To get a competitive offer for your coal products simply requesting a quote or contact us
With access rail and road logistics infrastructure within South Africa we are able to service our clients timelessly and cost effectively