Coal Exchange will determine the true cost of imported and Ukrainian coal
Coal Exchange will determine the true cost of energy products - Andrew Tabor. Shortage of coal and stop the threat of domestic power plants forcing Ukraine to increase imports of this fuel. Do not have time to October 23 in Port Illichivs’k come first batch of steam coal from South Africa, as there was a lot of questions.
How much coal still need to import? Why coal from South Africa expensive Ukrainian? Who can buy cheaper? Andrew Tabor, managing director of the company with foreign investments "Energy Resources of Ukraine", believes that these questions will answer the establishment of the coal exchange.
- For what Ukraine needs Coal Exchange? To determine the energy value of the product. Now in Ukraine there is a system in which the state regulator decides how much electricity, gas and coal. Determines the price not the market, and no one can say, for example, to whether the level of tariffs to invest in the extension of the life of the assets, the development of a coal mine or power units. The transition to the weighted price determination will allow the market to determine which coal is mined, how much and how mine. The most effective of the mine will earn more, invest in development and, in the long term, to offer lower prices.
- How to call for the exchange of foreign suppliers of coal? They will come, the main thing they do not interfere. The more suppliers will come, the lower the price for the final consumer. Let’s not forget that Ukraine imports a huge amount of coal. Just need to share the energy and coking coal grades "A", "D", etc. Only the United States and Australia and are now supplying to Ukraine on 10-12 million tons of coking coal for metallurgical complex. So that volumes to create the exchange is. Most liquid point for the "reference" is now Rotterdam, in relation to the cost of coal in Rotterdam, we can create the same, for example, in the port "South". Where carry trades themselves - does not matter, not traded on exchanges by coal, and logistics.