Coal Prices Set To Rise When Restocking Begins After US, Australia Mine Outages
Portfolio Pulse from Matt Whittaker
Coal prices are expected to rise in late summer and fall due to supply outages in Australia and the US. Key incidents include mine fires in Australia and West Virginia, and a lock and dam closure in Alabama. These disruptions will tighten supply, potentially benefiting coal producers like Anglo American, Peabody Energy, Warrior Met Coal, Alpha Metallurgical Resources, and Whitehaven Coal.
July 22, 2024 | 6:31 pm
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POSITIVE IMPACT
Alpha Metallurgical Resources is expected to benefit from higher coal prices due to supply tightness caused by various outages.
Supply tightness from multiple outages is likely to push coal prices higher, benefiting Alpha Metallurgical Resources.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Peabody Energy faces transportation challenges due to the Holt Lock and Dam closure but can still get its coal to market, potentially benefiting from higher prices.
Despite transportation issues, Peabody Energy can still deliver its coal, and higher prices due to supply tightness could benefit the company.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Warrior Met Coal faces transportation challenges due to the Holt Lock and Dam closure but can use alternative methods, potentially benefiting from higher prices.
Warrior Met Coal can use alternative transportation methods despite the Holt Lock and Dam closure, and higher prices due to supply tightness could benefit the company.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Itochu Corp, a partner in the Longview Mine, may face production delays but could benefit from higher coal prices due to supply tightness.
Itochu Corp may experience production delays due to the Longview Mine fire, but higher coal prices from supply tightness could benefit the company.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Anglo American's Grosvenor Mine outage is expected to tighten coal supply, potentially benefiting the company's other metallurgical coal production.
The Grosvenor Mine outage reduces Anglo American's coal output, tightening supply and potentially increasing prices, benefiting the company's other coal operations.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Posco Holdings, a partner in the Longview Mine, may face production delays but could benefit from higher coal prices due to supply tightness.
Posco Holdings may experience production delays due to the Longview Mine fire, but higher coal prices from supply tightness could benefit the company.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Whitehaven Coal is expected to benefit from higher coal prices due to supply tightness caused by various outages.
Supply tightness from multiple outages is likely to push coal prices higher, benefiting Whitehaven Coal.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70