We are into the second half of the second month of 2009 and pressure on coal prices have not eased. While the long-term outlook in this sector remains strong, thanks to strong fundamentals, spot prices continue to be under pressure. The reasons are being cited as high utility coal inventories, lower demand for electricity and competition from natural gas.
Gloucester Coal has forecast increased profitability this year due to strong prices and demand for coal, after delivering a jump in full-year profit. Chief executive Rob Lord said in a statement: While the benefits of these increased coal prices did have a positive impact on 2007/08 revenues (primarily the past few months), the benefits are anticipated [...]
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