Rise in ‘met’ coal welcome change
By Fred Pace, Huntington Herald-Dispatch
A recent upturn in the price of metallurgical coal is expected to spark new production and some additional employment in at least one smaller part of the beleaguered Appalachian coal industry.
But how long the surge lasts remains to be seen. The spot market price of metallurgical or “met” coal has grown from a low of less than $80 a ton just a few months ago to more than $200 a ton today.
“There are several reasons for this, but the primary reason for the recent run up is the decision by China to cut production of metallurgical coal there,” said T.L. “Terry” Headley, communications director for the American Coal Council.
“The recent rally in price for metallurgical coal is a welcome sign for the coal industry, as is news that financial institutions like Goldman Sachs have revised their projections and suggest that higher met coal prices are likely to remain into the foreseeable future,” Headley said. “In fact, Goldman is projecting prices stabilizing in the $135-145 price range over the next couple of years. Of course, there is no certainty in the marketplace, but this combined with recent improvements in the demand for steam coal provide the first real positive moves in the U.S. marketplace in several years.”
11. October 2016 by ACC
Categories: American Coal Council, coal, Coal Fundamentals, Coal Prices, Emerging Markets, Export, Mining, steel | Tags: ACC, coal, coking coal, election, met coal, metallurgical coal, Mining, prices, steel | Comments Off on Rise in ‘met’ coal welcome change