Coal Industry Showing Signs of Improvement as Foreign Coal Demand Grows
20 June 2012 - 10:20PM
Marketwired
The emergence of natural gas as a cheaper energy alternative in the
U.S. has been a major problem for coal investors in 2012. Coal
stocks may finally be on the upswing as foreign demand for coal
remains strong. China has recently approved 23 billion in steel
projects, and India's coal production is failing to meet their
growing demand. The Paragon Report examines investing opportunities
in the Coal Industry and provides equity research on Arch Coal Inc.
(NYSE: ACI) and Patriot Coal Corporation (NYSE: PCX).
Access to the full company reports can be found at:
www.ParagonReport.com/ACI
www.ParagonReport.com/PCX
The Centre for Monitoring Indian Economy (CMIE) in its monthly
report expects India's coal imports this year to increase by 28.3
percent (127 million tons). "Domestic coal production is not
sufficient to meet the rising demand from power, cement and steel
industries. Therefore, the country relies on imported coal," CMIE
said.
In addition, the $23 billion in approved steel projects will
look to boost demand for metallurgical coal, which plays a crucial
role in the steel making process. Steel output in China is expected
to reach 700 million tons in 2012 according to the China Iron and
Steel Association.
Paragon Report releases regular market updates on the Coal
Industry so investors can stay ahead of the crowd and make the best
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Arch Coal possess one of the industry's most geographically
diverse and balanced operating profiles providing a powerful
foundation on which to build out metallurgical and thermal volumes.
The company serves a broad mix of power producers and industrial
accounts here and around the world -- offering a vast metallurgical
and thermal product slate and a wide range of logistical options
for delivery.
Patriot Coal is a leading coal producer and marketer in the
eastern United States, with operations and coal reserves in
Appalachia and the Illinois Basin. In 2011, the company sold 31.1
million tons of coal, of which 76% was sold to domestic and global
electricity generators and industrial customers and 24% was sold to
domestic and global steel and coke producers. Shares of the company
surged 20 percent Monday.
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