The Coal Rally: The Beginning of the End?
By Ben Levisohn – December 30, 2016
Coal prices had been surging this year, giving a big boost to coal companies. Coal prices, however, have been tumbling the past few days and Axiom Capital’s Gordon Johnson contends we could be witnessing the end of the rally…and the iron ore rally with it. He explains why.
Based on information released yesterday, China is considering raising the 2017 steel and coal capacity-cut targets by 10%. Simply put, this means more steel and coal production from China next year.