Coal Stocks Continue to Benefit From Tightening Global Supply (MEE, ICO, ACI, PCX)
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Several of the world's largest coal companies are hitting new 52-week highs today as the global supply of coal continues to contract. Supply concerns have caused coal prices to rise by 21% since the beginning of 2008, and shares of coal stocks have subsequently gone up as a result.
Analysts believe that unpredictable environmental issues in China, South Africa and Australia, some of the largest coal mining countries in the world, will cause further constrains in the global supply of coal. Last week, China announced that it would need to stop exporting coal until March as extreme snowstorms across the country have caused power outages. South Africa is also dealing with similar power outages, although not related to snow, causing the country's officials to declare a national 'electricity emergency'.
Coal companies Massey Energy (NYSE: MEE), International Coal Group (NYSE: ICO), Arch Coal (NYSE: ACI) and Patriot Coal (NYSE: PCX) have all set new 52-week highs today as the price of coal continues to rise.
Massey is up more than $2, or 5.5%, to hit a new 52-week high at $41.26. Shares of ICO have jumped in mid-day trading, hitting a new high at $7 after jumping more than $0.30. Arch Coal quickly jumped into the positive after opening the day under Friday's close, hitting a new 52-week high at $49.83, but has since pulled off its high and is now down about $0.40, or about 0.8%. Finally, shares of Patriot Coal are steadily rising moving into today's afternoon trading session and have marked a new high at $43.87, up more than $2 from yesterday's close.
Analysts believe that unpredictable environmental issues in China, South Africa and Australia, some of the largest coal mining countries in the world, will cause further constrains in the global supply of coal. Last week, China announced that it would need to stop exporting coal until March as extreme snowstorms across the country have caused power outages. South Africa is also dealing with similar power outages, although not related to snow, causing the country's officials to declare a national 'electricity emergency'.
Coal companies Massey Energy (NYSE: MEE), International Coal Group (NYSE: ICO), Arch Coal (NYSE: ACI) and Patriot Coal (NYSE: PCX) have all set new 52-week highs today as the price of coal continues to rise.
Massey is up more than $2, or 5.5%, to hit a new 52-week high at $41.26. Shares of ICO have jumped in mid-day trading, hitting a new high at $7 after jumping more than $0.30. Arch Coal quickly jumped into the positive after opening the day under Friday's close, hitting a new 52-week high at $49.83, but has since pulled off its high and is now down about $0.40, or about 0.8%. Finally, shares of Patriot Coal are steadily rising moving into today's afternoon trading session and have marked a new high at $43.87, up more than $2 from yesterday's close.
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