Alliance Resource Sees Demand for Coal Firming in 2023 -- Energy Comment
By Stephen Nakrosis
January 31, 2023 - Alliance Resource Partners, L.P. said international demand for coal is expected to firm this year as geopolitical actions impact the market.
Joseph W. Craft III, the company's chairman, president and chief executive, said "coal prices remain elevated in anticipation of international demand firming throughout the year as China's economy reopens and as European markets look to replace 40 million tons of Russian coal imports received last year but unavailable this year."
The company said about 94% of its 2023 expected coal sales volumes are committed and priced above 2022 per ton levels.
Outlook
According to Mr. Craft, "The supply driven energy crisis, Russia's invasion of Ukraine and the steep build of inflation disrupted energy prices and placed a new emphasis on energy security in 2022."
He also said Europe's shift from Russian energy and economic sanctions are lowering Russian supply to the world, "changing global energy trade routes and energy markets for several years to come, if not permanently. U.S. natural gas and coal exports should benefit in 2023 and beyond."
He also said "in the back of this year and into 2024, we expect global economic activity will result in rising oil, gas and coal prices, and support our guidance."