The Globalization of Steam Coal Markets and the Role of Logistics: An Empirical Analysis

Aufsätze referiert extern - Web of Science

Aleksandar Zaklan, Astrid Cullmann, Anne Neumann, Christian von Hirschhausen

In: Energy Economics 34 (2012), 1, S. 105-116

Abstract

In this paper, we provide a comprehensive multivariate cointegration analysis of three parts of the steam coal value chain - export, transport and import prices. The analysis is based on a rich dataset of international coal prices; in particular, we combine data on steam coal prices with freight rates, covering the period December 2001 until August 2009 at weekly frequency. We then test whether the demand and supply side components of steam coal trade are consistently integrated with one another. In addition, export and import prices as well as freight rates for individual trading routes, across regions and globally are combined. We find evidence of significant yet incomplete integration. We also find heterogeneous short-term dynamics of individual markets. Furthermore, we examine whether logistics enter coal price dynamics through transportation costs, which are mainly determined by oil prices. Our results suggest that this is generally not the case.

Aleksandar Zaklan

Wissenschaftlicher Mitarbeiter in der Abteilung Energie, Verkehr, Umwelt

Anne Neumann

Wissenschaftliche Mitarbeiterin in der Abteilung Energie, Verkehr, Umwelt

Astrid Cullmann

Wissenschaftliche Mitarbeiterin in der Abteilung Unternehmen und Märkte



JEL-Classification: L11;Q41;C22
Keywords: Steam coal, Market integration, Multivariate cointegration
DOI:
http://dx.doi.org/10.1016/j.eneco.2011.03.001