U.S. Coal Industry Expect Coal Demand And Prices Rise
December 8th, 2009 | File Under : Coal - Companies - Trade & Market
Increased demand and coking coal prices in Asia gives hope to the U.S. coal industry affects the demand for coal stocks in the U.S.. Leaders in the U.S. mining company saw indications of an increase in demand for coal and rising coal prices.
U.S. mining companies expect an increase in coal demand and coal prices will help mining companies out the crisis facing today.
Kevin Crutchfield, chief executive of Alpha Natural Resources, said, “Demand from steelmakers for the metallurgical, or coking coal is to rebound more quickly, especially in Asia, but it probably will take another year to thermal, or steam coal used in power generation , to return to the level before last year’s economic downturn. Market demand for moving coal and we look for heat recovery in the not too long. ”
“There are times when we were all hoping it will all end. But now we see things change and we are optimistic. ”
Supplies of coal in the U.S. today is still too high. Around 100 million tonnes to be taken out of the market to return to the range from 130 million to 150 million tons.
In the global coal market, Crutchfield said can be summed up in one word – China. Asian consumption is expected to increase to 8 billion tons of the 6 billion tons in the next 20 years, he said.
China now a net importer of metallurgical coal for steel production is estimated to exceed 600 million tons this year – roughly half of total world steel manufacturers.
Victor Patrick, CEO of another U.S. coal producer, Walter Energy (WLT.N) also noted the industry rebound.
“Although we experienced this time of the year in which our ability to sell is limited by the demand for our products, our customers are not there, it does not happen again.
“We’re back to where we have historically, in which our ability to sell our products is limited by our ability to get product from me,” he told Macquarie conference.
Find More Other News : coking coal demand - coking coal prices - coking coal production