Coal companies have been performing somewhat volatile of late, depending on specific results for each company, even though the overall sector has been doing well recently. Firms like Alliance Holdings GP, (NASDAQ:AHGP), Cloud Peak Energy Inc. (NYSE:CLD), Arch Coal, Inc. (NYSE:ACI) and Natural Resource Partners (NYSE:NRP) closed mixed on Friday.
Metallurgical coal prices were mixed last week on the U.S. spot market, with spot prices for low-volatility coking coal dropping $3.12, or 0.9 percent, to $326.88 a ton in the week ended Friday, according to Energy Publishing Inc.. High-volatility coal remained the same at $298.33.
Like any sector, coal companies, even within a high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and should rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, according to the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should jump by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before the financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Natural Resource Partners (NYSE:NRP) closed Friday at $34.10, gaining $0.14, or 0.41 percent. Arch Coal, Inc. closed at $33.74, rising $0.39, or 1.17 percent. Cloud Peak Energy Inc. ended the session at $19.88, falling $0.76, or 3.68 percent. Alliance Holdings GP closed at $50.33, up $0.72, or 1.45 percent.
Showing posts with label Coal Prices. Show all posts
Showing posts with label Coal Prices. Show all posts
Monday, April 18, 2011
Joy Global (JOYG) (PVR) (ARLP) (WLB) Close Up as Coal Prices Mixed
Coal companies have been performing somewhat volatile of late, depending on specific results for each company, even though the overall sector has been doing well recently. Firms like Joy Global (Nasdaq:JOYG), Penn Virginia Resource Partners (NYSE:PVR), Alliance Resource Partners, (NASDAQ:ARLP) and Westmoreland Coal Company (AMEX:WLB) closed up on Friday.
Metallurgical coal prices were mixed last week on the U.S. spot market, with spot prices for low-volatility coking coal dropping $3.12, or 0.9 percent, to $326.88 a ton in the week ended Friday, according to Energy Publishing Inc.. High-volatility coal remained the same at $298.33.
Like any sector, coal companies, even within a high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and should rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, according to the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should jump by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before the financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Penn Virginia Resource Partners closed Friday at $27.09, gaining $0.19, or 0.71 percent. Joy Global closed at $96.86, rising $0.89, or 0.93 percent. Alliance Resource Partners ended the session at $75.23, jumping $0.37, or 0.49 percent. Westmoreland Coal Company closed at $16.00, up $0.31, or 1.97 percent.
Metallurgical coal prices were mixed last week on the U.S. spot market, with spot prices for low-volatility coking coal dropping $3.12, or 0.9 percent, to $326.88 a ton in the week ended Friday, according to Energy Publishing Inc.. High-volatility coal remained the same at $298.33.
Like any sector, coal companies, even within a high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and should rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, according to the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should jump by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before the financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Penn Virginia Resource Partners closed Friday at $27.09, gaining $0.19, or 0.71 percent. Joy Global closed at $96.86, rising $0.89, or 0.93 percent. Alliance Resource Partners ended the session at $75.23, jumping $0.37, or 0.49 percent. Westmoreland Coal Company closed at $16.00, up $0.31, or 1.97 percent.
Friday, April 15, 2011
Coal's Massey (MEE) (ICO) (LLEN) (ANR) (PCX) Trade Mixed
Coal companies have been performing somewhat volatile of late, depending on specific results for each company, even though the overall sector has been doing well recently. Firms like International Coal Group (NYSE:ICO), Massey Energy (NYSE:MEE), L&L Energy (NASDAQ:LLEN), Alpha Natural Resources (NYSE:ANR) and Patriot Coal (NYSE:PCX) closed mixed on Thursday, as the market looks for short-term direction.
Like any sector, coal companies, even within the high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and that could rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, said the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should grow by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before he financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Patriot Coal closed Thursday at $24.53, gaining $0.47, or 1.95 percent. Alpha Natural Resources closed at $53.45, falling $0.44, or 0.82 percent. L&L Energy ended the session at $5.75, jumping $0.75, or 15.00 percent. Massey Energy closed at $63.00, down $0.25, or 0.40 percent. International Coal Group closed at $11.04, rising $0.43, or 4.05 percent.
Like any sector, coal companies, even within the high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and that could rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, said the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should grow by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before he financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke, as coal has been attempted to be painted in the same way, not taking into account the huge amounts of coal being discovered in China, and other places, and extraction methods that have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Patriot Coal closed Thursday at $24.53, gaining $0.47, or 1.95 percent. Alpha Natural Resources closed at $53.45, falling $0.44, or 0.82 percent. L&L Energy ended the session at $5.75, jumping $0.75, or 15.00 percent. Massey Energy closed at $63.00, down $0.25, or 0.40 percent. International Coal Group closed at $11.04, rising $0.43, or 4.05 percent.
Coal's Arch (ACI) (NRP) (YZC) (BTU) Trade Mixed
Coal companies have been performing somewhat volatile of late, depending on specific results for each company, even though the overall sector has been doing well recently. Firms like Arch Coal, Inc. (NYSE:ACI), Natural Resource Partners (NYSE:NRP), Yanzhou coal mining Co. (NYSE:YZC) and Peabody Energy Corporation (NYSE:BTU) closed mixed on Thursday, as the market looks for short-term direction.
Like any sector, coal companies, even within the high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and that could rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, said the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should grow by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before he financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke to say coal is peaking, not taking into account the huge amounts of coal being discovered in China, and other places, while extraction methods have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Peabody Energy Corporation closed Thursday at $65.76, falling $0.58, or 0.89 percent. Yanzhou Coal Mining closed at $37.08, gaining $0.49, or 1.34 percent. Natural Resource Partners ended the day at $33.96, dropping $0.22, or 0.64 percent. Arch Coal closed at $33.35, down $0.12, or 0.36 percent.
Like any sector, coal companies, even within the high-demand industry, still won't be carried solely by the robust market demand.
Even so, approximately 40 percent of global electricity production comes from coal, and that could rise in the years ahead, as coal consumption is expected to increase at a rate of 2.5 percent annually over the next 20 years, according to Research and Markets.
It could even be more than that, as evidenced by the 5 percent increase in 2010, said the EIA. It adds that 2011 coal consumption should remain about level, and in 2012 should grow by between 2 to 3 percent.
JPMorgan (NYSE:JPM) also recently said coal prices are up over the last year, but are still below the highs attained before he financial crisis in the latter part of 2008, suggesting room to move higher, although the health of the global economy will play a role there.
Coal is still the major fuel for electricity production. Global coal consumption, approximately 6.7 billion tons in 2006, is set to reach close 10 billion tons in 2011.
China produces about 70 percent of its electricity from coal and demand there continues to grow. Demand for coal to fuel power plants will climb to 1.4 billion tons by 2015, according to China Huaneng Group Corp.’s Chief Economist Wu Dawei.
So when you hear the next report attempt to downplay the role of coal, don't believe it. It's as needed and in demand as ever, and similar to the oil peak predictions, is pretty much a joke to say coal is peaking, not taking into account the huge amounts of coal being discovered in China, and other places, while extraction methods have been improved.
Many coal companies will shine, but they still need to be judged by their individual merits and not expect the ongoing coal demand imply all of them will be winners pulled up by the broader sector.
Peabody Energy Corporation closed Thursday at $65.76, falling $0.58, or 0.89 percent. Yanzhou Coal Mining closed at $37.08, gaining $0.49, or 1.34 percent. Natural Resource Partners ended the day at $33.96, dropping $0.22, or 0.64 percent. Arch Coal closed at $33.35, down $0.12, or 0.36 percent.
Monday, December 6, 2010
Rio Tinto (NYSE:RIO), Walter Energy (NYSE:WLT) Continue Coal M&A Trend
With demand for coal continuing to rise, led by China and India, a large number of mergers and acquisitions have bee taking place, with 34 underwritings in the sector in November alone, with Rio Tinto (NYSE:RIO) and Walter Energy (NYSE:WLT) part of bigger deals.
FBR commented, "We came back from our Australia trip very bullish on the coal space due to very active and high risk underwriting activity in November (34 underwritings in the mining space). We believed that M&A trends would accelerate as these underwritings were underpinned by projects that had 2-5 year production pipelines behind them. Several of the companies we met with are being or potentially being taken out (Caledon, Riversdale, and Whitehaven). The Chinese and Indians are fueling much of this action, driven by a scarcity factor. The US coal market continues to be impacted by rising environmental rules and regulation; the emerging markets are truly the place to be for investors. Our thesis remains bullish for US steam coal exports to drive rising US coal prices but the domestic market remains challenged by pending Transport rules and other rising EPA regulation. We expect every US company to raise its export focus and grab as much port capacity to capitalize the rest of the world's need for coal."
Rio Tinto was trading at $70.25, up by $0.18, or 0.26 percent. Walter Energy was at $113.93, gaining $3.43, or 3.10 percent.
FBR commented, "We came back from our Australia trip very bullish on the coal space due to very active and high risk underwriting activity in November (34 underwritings in the mining space). We believed that M&A trends would accelerate as these underwritings were underpinned by projects that had 2-5 year production pipelines behind them. Several of the companies we met with are being or potentially being taken out (Caledon, Riversdale, and Whitehaven). The Chinese and Indians are fueling much of this action, driven by a scarcity factor. The US coal market continues to be impacted by rising environmental rules and regulation; the emerging markets are truly the place to be for investors. Our thesis remains bullish for US steam coal exports to drive rising US coal prices but the domestic market remains challenged by pending Transport rules and other rising EPA regulation. We expect every US company to raise its export focus and grab as much port capacity to capitalize the rest of the world's need for coal."
Rio Tinto was trading at $70.25, up by $0.18, or 0.26 percent. Walter Energy was at $113.93, gaining $3.43, or 3.10 percent.
Tuesday, November 23, 2010
Massey (NYSE:MEE) Announces Official Sale Process Launched
Massey Energy's (NYSE:MEE) board of directors announced Monday they've began an official sales process, although there are no guarantees at this time the company will be sold and no targeted date to get the job done.
FBR said, "Last night after the close, Massey board announced an official sale process with no timetable set and guarantee of a sale. We had downgraded the stock yesterday morning due to limited upside for new MEE buyers and upside capped due to Friday evenings new PPOV list released (with more to come). We also believe that the company would be successful in a sale process and that's why we raised our target price as well.
"We believe the met coal is very tight and known but believe the steam coal prices are poised to rise, as Chinese and other international steam coal prices have been rising, Newcastle ships queues lengthen. After a lackluster steam export year, we expect the stage is set for 2011 US steam coal exports will rise meaningfully and US utilities will have to search other basins to contract coal in 2H11. The coal stocks have performed very well over the past four months driven by a solid broader market (QE2), rising met and steam coal prices, and increased consolidation activity. Our trip to Australia highlighted the high pace of financing activity sponsored by Indian and Chinese coal buyers trying to bridge the expected coal shortfall over the next 3-5 years."
Massey is trading at $49.11, dropping $1.41, or 2.79 percent at 11:57 AM EST.
FBR said, "Last night after the close, Massey board announced an official sale process with no timetable set and guarantee of a sale. We had downgraded the stock yesterday morning due to limited upside for new MEE buyers and upside capped due to Friday evenings new PPOV list released (with more to come). We also believe that the company would be successful in a sale process and that's why we raised our target price as well.
"We believe the met coal is very tight and known but believe the steam coal prices are poised to rise, as Chinese and other international steam coal prices have been rising, Newcastle ships queues lengthen. After a lackluster steam export year, we expect the stage is set for 2011 US steam coal exports will rise meaningfully and US utilities will have to search other basins to contract coal in 2H11. The coal stocks have performed very well over the past four months driven by a solid broader market (QE2), rising met and steam coal prices, and increased consolidation activity. Our trip to Australia highlighted the high pace of financing activity sponsored by Indian and Chinese coal buyers trying to bridge the expected coal shortfall over the next 3-5 years."
Massey is trading at $49.11, dropping $1.41, or 2.79 percent at 11:57 AM EST.
Wednesday, November 17, 2010
Goldman (NYSE:GS) Says Norfolk Southern's (NYSE:NSC) Margins Under Pressure
Goldman Sachs (NYSE:GS) downgraded Norfolk Southern (NYSE:NSC) from "Neutral" to "Sell," citing pressures on margins.
Norfolk Southern, which for the most part transports commodities and consumer products, said in order to improve their services they're going to have to increase capital expenditure, which could affect margins and earnings.
Coal coming from Appalachia is expected to decrease for transporting, along with the ability to increase pricing in general.
Norfold was trading at $60.37, dropping $0.18, or 0.30 percent, at 2:26 PM EST. Goldman slashed their price target on them from $62 to $59.
Norfolk Southern, which for the most part transports commodities and consumer products, said in order to improve their services they're going to have to increase capital expenditure, which could affect margins and earnings.
Coal coming from Appalachia is expected to decrease for transporting, along with the ability to increase pricing in general.
Norfold was trading at $60.37, dropping $0.18, or 0.30 percent, at 2:26 PM EST. Goldman slashed their price target on them from $62 to $59.
Thursday, November 11, 2010
Citigroup (NYSE:C) Sees Possible $10 Billion Share Buyback by Rio (NYSE:RIO)
Citigroup (NYSE:C) said they believe Rio Tinto (NYSE:RIO) could launch a $10 billion share buyback sometime in 2011 while maintaining their capex project for its mine projects.
“We expect Rio to move into a net cash position in 2011. This will allow the company to look at growing through M&A or returning cash to shareholders through buybacks,” Citigroup wrote in a note.
After the takeover of Alcan in 2007, Rio Chief Executive Officer Tom Albanese has worked on paying down the debt from the deal and profits increased as metal prices, along with coal and iron ore, went up.
Citigroup estimates net cash for Rio Tinto to be $9.4 billion in 2011, and increasing to $23.9 billion in 2012. Capex is expected to reach $9 billion in 2011.
Rio said their focus is on investing in areas that will add growth to the company.
“We expect Rio to move into a net cash position in 2011. This will allow the company to look at growing through M&A or returning cash to shareholders through buybacks,” Citigroup wrote in a note.
After the takeover of Alcan in 2007, Rio Chief Executive Officer Tom Albanese has worked on paying down the debt from the deal and profits increased as metal prices, along with coal and iron ore, went up.
Citigroup estimates net cash for Rio Tinto to be $9.4 billion in 2011, and increasing to $23.9 billion in 2012. Capex is expected to reach $9 billion in 2011.
Rio said their focus is on investing in areas that will add growth to the company.
Tuesday, May 18, 2010
Teck Resources (TSE:TCK-B) Gains Back Much of Yesterday's Losses
Teck Resources (NYSE:TCK) (TSE:TCK-B) has gained back about two thirds of yesterday's 6 percent loss, as growing concerns over how China's battle with inflation will affect commodity demand.
The EU debt crisis has also generated a lot of questions as to how commodity demand will be impacted by the austerity measures many of the countries in the euro zone will have to take, as well as the enormous debt to again be incurred by those countries.
Strong exposure to copper and coal by Teck has shareholders and investors closely watching the large mining companies with exposure to those commodities which could struggle the most in a low-import environment.
China raising interest rates to combat its rising inflation will probably cause a decline in raw material demand, as the loose monetary policy getting tightened should cause construction to slow down some in the country.
Even relatively small decline in growth in China could cause major ripples, because of the enormous volume of imports the country uses to expand their economy.
Teck Resources will respond to the demand of raw materials, no matter which way it goes, and the EU debt Crisis and China inflation battle could continue to put downward pressure on the share price going forward.
The EU debt crisis has also generated a lot of questions as to how commodity demand will be impacted by the austerity measures many of the countries in the euro zone will have to take, as well as the enormous debt to again be incurred by those countries.
Strong exposure to copper and coal by Teck has shareholders and investors closely watching the large mining companies with exposure to those commodities which could struggle the most in a low-import environment.
China raising interest rates to combat its rising inflation will probably cause a decline in raw material demand, as the loose monetary policy getting tightened should cause construction to slow down some in the country.
Even relatively small decline in growth in China could cause major ripples, because of the enormous volume of imports the country uses to expand their economy.
Teck Resources will respond to the demand of raw materials, no matter which way it goes, and the EU debt Crisis and China inflation battle could continue to put downward pressure on the share price going forward.
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