The need for coal may remain strong over the next couple of years despite a global push for less use, EuroDry's Aristides Pittas says.
"Coal is still needed for electricity," the chief executive said today during the company's fourth-quarter earnings call.
Analysts expect demand to remain flat but the commodity has given good results more than once over the past four years, he said.
"I still think it'll be higher than that," he said.
EuroDry expects first-quarter rates to be "quite depressed" in light of US-China trade tensions and the recent Vale dam disaster, which may lower annual iron ore output by 40 million tonnes.
"The downward drivers are mainly Chinese but also Indian iron ore and coal imports which may surprise either way in the remaining of the year," the company said.
"Coal imports despite the longer term concerns due to the overall desire to reduce coal use, have been surprisingly strong in 2018 and are expected to further grow in 2019/20 as electricity demand remains robust."
Pending IMO 2020 regulations present a "wildcard", however, with regards to market influencers, EuroDry said.
