A weak European gas and power complex is making coal increasingly less economically viable. As a result, ARA API2 coal prices are trading at significant discounts compared to other primary import hubs, mainly in Asia where coal demand remains strong. Colombia, with its coal ports situated along the Atlantic, stands as the largest coal supplier to Europe. However, the country has increased exports to the Pacific basin substantially, driven by miners' efforts to sell their products in countries offering the highest FOB netback prices. This has not yet led to a tightening of the European coal market, as ARA coal stockpiles remain ample above 6mt.

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