Coal prices have risen 30 per cent from their low in March. However, for the second half of 2009, there are still risks of tight coal supply. In China, many domestic producers have arbitraged the low offshore prices with higher onshore prices, which has made demand look stronger than it was. So, correction is expected in the new two months. However, strong demand for thermal coal in China and India is expected to help Asia avoid the first fall in imports for a decade this year, and push import growth even higher in 2010.
About four Indonesian investors are interested in taking over a coal project owned by BHP Billiton Ltd.
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Coal stocks dipped across the board Wednesday after a pileup of bleak economic news sent investors scurrying, worried that a reversal of the market’s rally will translate to more pullback in demand for basic materials.
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After a dark winter for Canadian coal producers, spring supply contract negotiations halfway around the world are providing a glimmer of light at the end of the mine shaft. As news of the pricing agreement filtered through the market last week, Canadian coal stocks have reaped the benefits.
Indonesia’s parliament is set to pass a new law on coal and mining that promises more certainty for investors but may not be enough to attract major new foreign investment to exploit rich mineral resources.
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CBC Money reports Teck Cominco has secured close to $10 billion in financing needed to take over Fording Canadian Coal Trust however shares still fell.
Teck shares sank $4.65, or 13.9 per cent, to $28.92 on the TSX, just shy of its 52-week low of $28. Teck shares were trading near $53 in May.
Analysts said the share drop [...]
Welcome to the Coaling Station, your online recap of what’s happening in the global coal industry. We are hoping to have a new edition twice a week, depending on sector activity.
If you are lucky, Santa Claus may leave a huge lump of coal in your stocking this year. With near-month futures contracts trading in the $120-$130 per ton range, the formerly shunned fuel is more valuable than ever.
As with most investments there are risks and rewards associated with commodity investing, often in lock-step. Many investors hire experts to manage their money rather than doing the investigation required to increase the chances for success. But...
Monday, September 21, 2009
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