X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 10 hours America Makes Plans to Produce Needed Rare Earth Minerals Domestically
  • 3 hours IS SAUDI ARABIA SENDING A MESSAGE TO BIDEN
  • 10 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 days Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 2 days Former BP Exec "Biden not in war against oil" . . Really ?
  • 2 days Texas Supply Chain Massacre
  • 2 days Here we go - again: plug-in hybrids cost motorists more than what they were told
  • 7 hours Top Conservative Lawyer Says Trump Can Stand Trial
  • 7 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days An exciting development in EV Aviation: Volocopter
Is This The Final Nail In Coal’s Coffin?

Is This The Final Nail In Coal’s Coffin?

Asian coal importers are turning…

Coal Production On The Rise Despite Coronavirus Crisis

Coal Production On The Rise Despite Coronavirus Crisis

Despite massive disruptions caused by…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Noose Tightening On Coal Industry

The fortunes of U.S. coal companies continue to fade.

The ongoing switch to natural gas and renewable energy continues to damage coal miners. Coal plants are shuttering amid weak demand, and the international market is not looking any better. Prices for metallurgical coal, which is used to make steel, are hovering around their lowest levels in more than a decade. Dipping below $100 per metric ton, coal prices are now 70 percent lower than they were four years ago.

Coal stocks have taken a beating as a result. Peabody Energy Corporation, the world’s largest private sector coal company, has seen its share price cut in half in just a month, falling below $1.68 at the close of business on July 8. The company announced the sale of an Australian mine on the same day. “We suspect anything and everything is for sale at the right price,” Mark Levin of BB&T Capital Markets, wrote in an investor note, referring to assets for the whole industry. “Unfortunately, the opportunity to get maximum value for these assets is limited.” Related: Now Is A Good Time To Pick Up Some Oil Stocks

Arch Coal, another massive coal miner, is refinancing some of its outstanding debts in order to gain breathing room. It is struggling under the weight of horrific market conditions and its share price has lost nearly 90 percent of its value over the past year. Related: Midweek Sector Update: Oil Prices Crash Again – Another Downturn Ahead?

Exports are not offering coal producers the lifeline the industry once thought it would. Demand in China is weaker than expected, and the overbuild of coal mines in the last decade has left the world with a glut of capacity. Coal exports from Hampton Roads in Virginia, one of the largest ports on the east coast of the U.S., hit its lowest level in six years for the month of June, according to Platts.

That probably won’t change. “Met prices down here, in combination with steam prices the way they are, make it impossible…for [many U.S. coal companies] to improve their balance sheets in a material way,” Levin from BB&T Capital Markets wrote.

Several companies have already declared bankruptcies, but more are likely.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News