Feb 26 • 03:10 UTC 🇵🇱 Poland Rzeczpospolita

President of Bogdanka: it is impossible to compete with coal sold below cost

The President of Bogdanka discusses the challenges facing the Polish coal market, highlighting pressures from low-demand and coal being sold below extraction costs.

The coal market in Poland is currently under significant price pressure, characterized by decreasing demand and competition from coal that is sold below the cost of extraction. This creates a challenging environment for coal companies, particularly those operating sustainably and efficiently, as they struggle to compete with prices that do not reflect the true costs of coal production. As a result, the transaction prices in the domestic market often fail to account for the real expense incurred by mining operations.

The lack of competitiveness in the domestic market can be attributed to regulatory conditions and the structural organization of the sector. Some mines operate under different economic frameworks, which complicates fair competition. Consequently, the discrepancies in operational conditions among various coal companies hinder the market from establishing a pricing mechanism that accurately reflects costs, disproportionately affecting those firms that operate under market principles without systemic financial support.

Furthermore, even with high operational efficiency, coal companies face limits when the market is set at prices that are economically unsustainable. This situation diminishes profit margins and challenges the ability to maintain profitability while adapting to the adverse market conditions, leading to concerns over the future viability of the coal sector in Poland and the broader implications for energy supply and security in the region.

📡 Similar Coverage