Multi-product coal distribution and price discovery for the domestic market via mathematical optimisation
| Autor: | R.C.A. Minnitt, Maryke C. Rademeyer, Rosemary Falcon |
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| Rok vydání: | 2020 |
| Předmět: |
Earnings
business.industry 020209 energy Economics Econometrics and Finance (miscellaneous) technology industry and agriculture Coal mining Distribution (economics) 02 engineering and technology 010501 environmental sciences Multi product complex mixtures 01 natural sciences Domestic market Price discovery respiratory tract diseases Product (business) otorhinolaryngologic diseases 0202 electrical engineering electronic engineering information engineering Coal Business health care economics and organizations Social Sciences (miscellaneous) Industrial organization 0105 earth and related environmental sciences |
| Zdroj: | Mineral Economics. 34:113-126 |
| ISSN: | 2191-2211 2191-2203 |
| DOI: | 10.1007/s13563-020-00232-5 |
| Popis: | This paper investigates the implications for coal supply security for the domestic South African market when faced with weaker export demand. A model is proposed of domestic coal trade via a trading hub which links coal production to consumer markets. An application of the theory for equilibrium price discovery at the mine-trader and trader-consumer interfaces is also described. It is found that the profit-maximising trader seeks to sell more volumes to domestic consumers of higher-grade coal to compensate for earnings lost due to lower export volumes. This results in lower prices on higher-grade product. Supply to domestic consumers of lower-grade coal appears to be unaffected by the weaker export market, with the price on lower-grade coal constant. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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