Source: @OilPriceInfo via Facebook.
Well-known among those who invest in coal, the European Coal Outlook Conference will be held in Nice on May 21, 2019. We take stock of this highly discreet investment sector.
Coal, a little-known commodity among investors
The commodities sector encompasses a wide range of elements, from oil, gold, livestock, coffee, wheat, to natural gas. This investment sector is particularly appreciated for its resilience to inflation. Moreover, certain assets like gold are considered safe havens.
Few individual investors venture into commodities like coal because it is mainly an over-the-counter market dominated by institutional investors and is difficult to access. They generally prefer to explore other markets such as metals or oil. Others may prefer to invest in companies related to coal rather than the raw material itself. Nonetheless, coal remains an interesting market, at least in the medium term.
Coal, a risky market in the long term?
Though coal is the bane of environmentalists, demand increased in 2017 according to figures from the International Energy Agency, with an increase of about 1%. China and India remain two major consumers of coal for electricity production. Additionally, the American policy led by Donald Trump is highly favorable to coal extraction. Nevertheless, this is not enough, and the outlook remains poor for the sector in the United States.
Source: MaxPixel.
In Europe as well, the outlook is mixed. Indeed, at the end of December 2018, the member states of the European Union reached an agreement regarding the Energy Directive. One of the major aspects of this directive is the elimination of subsidies for the vast majority of coal-based electricity plants. Although Poland managed to secure an exemption, the long-term future of the coal sector remains compromised.
European Coal Outlook Conference: Practical details
For now, however, the market still attracts a number of investors and speculators. The European Coal Outlook Conference will take place in Nice on May 21, 2019. The event is organized by IHS Markit and sponsored, notably, by the company managing the Port of Amsterdam, the second-largest coal port in the world. During the day, participants will have the opportunity to attend several conferences and debates to learn about the latest market perspectives. This type of event is therefore a must for investors.
Among the topics covered will be perspectives on the increase in the Turkish market’s consumption and German coal-related policies. The event will also focus on the potential growth demand related to this resource.
Coal, a tough market
It is clear that coal is a complex market reserved for seasoned investors. Amateur investors will likely prefer to turn to other commodities and have a more global perspective on the commodities sector as a whole.
They might prefer to get a pulse on the sector by attending the Conference on Commodities, Volatility, and Risk Management in Paris from May 13 to 15, scheduled at the University of Paris-Dauphine.
