Coal Update 10/9/15

At this point, US thermal has dropped below $50/mt for over 2 months. Australian has dropped under $60 and is the lowest in 8 years.

Big investors have stepped in and bought up shares of certain coal companies. Several Majors have gone bankrupt and have reverse split their shares.

India has bottlenecks to imports such as land acquisition, environmental, and infrastructure bottleneck issues but met and thermal coal is expected to pick up there and overtake china by 2019.

Japan is the largest coke importer, china is second, india is third.

China has begun exporting its excess steel to india and elsewhere.

Glencore says further production cuts are possible if prices drop further.

indonesia has cut production and will cut further.

many analysts saying coal is near rock bottom and is approaching unsustainability in price. They also say price will languish around here as global demand and economy are low.

I think it’s time to buy soon. Probably around 2016s beginning. There was an uptick in stock price before a coal price recovery in 2009. It could happen that way again.


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