Coal Stocks Gain as Coking Coal Prices Bounce Back - Analyst (ACI) (ANR) (BTU)

U.S. Coal stocks with exposure to coking coal, including Arch Coal (NYSE: ACI), Alpha Natural (NYSE: ANR) and Peabody Energy (NYSE: BTU) are stronger today with spot coking coal prices bouncing back.

In a note to clients earlier today, JPMorgan's John Bridges commented: "The spot coking coal price plummeted from ~$100/t after we forecast a low $100s level for the Q3 coking coal benchmark in early April. This led to new announcements of production cuts from Teck, Peabody and Alpha. Perhaps these new cuts are beginning to gain traction. The spot coking coal price has jumped $3 today to $91.70 and is now ~$7 off its lows. This is still not a healthy level for US producers, and we still expect cuts to exports this year, but it may suggest the market is beginning to balance."

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