The structure of coal prices

Value coal includes several components, and depends on many factors.

There is no international exchange for coal trade in the world, so the coal price determined by the market - the ratio of supply and demand, as well as, in some cases, may be established by directive. The bulk of the delivered coal is sold under long-term contracts and the rest - spot deliveries.

Spot coal prices everywhere are formed regionally, there are no uniform prices existed. One of the factors affecting the cost of coal - its quality is determined by the degree of metamorphism and composition of coal. In different deposits it is different, as well as the cost of production and a large component in the price of coal - its transportation. If you take into account all these factors, the range of prices for coal can be significant.