Coal Miners Continue Slide as Largest Customer Shows Signs of Weakness (ANR) (PCX) (ACI)
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Coal miners continue to hit the skids following a brief recovery Tuesday and Wednesday, as data out of China, the world's largest consumer of coal, drove many back to the sidelines.
According to the HSBC, its purchasing managers' index (PMI) fell from 49.6 percent in January, to 48.1 in February. Numbers below 50 indicate contraction in the economy. One economist for HSBC is quoted as saying, "It's a bit of a disappointing reading, no doubt about it...This number suggests that re-acceleration is coming a bit later than the market had expected."
China is both the largest producer and consumer of coal, data show. According to latest figures from nationmaster, China's coal consumption was 1.3 billion short tons. The number is 24 percent above that of the U.S., which came in second place.
On the recent news, companies like Patriot Coal (NYSE: PCX), Cliffs Natural (NYSE: CLF), Alpha Natural (NYSE: ANR), Arch Coal (NYSE: ACI), and Peabody (NYSE: BTU) have been getting hit. Patriot is leading the march lower today, down over 5 percent on the session, while most other miners are off between 3 percent and 5 percent.
According to the HSBC, its purchasing managers' index (PMI) fell from 49.6 percent in January, to 48.1 in February. Numbers below 50 indicate contraction in the economy. One economist for HSBC is quoted as saying, "It's a bit of a disappointing reading, no doubt about it...This number suggests that re-acceleration is coming a bit later than the market had expected."
China is both the largest producer and consumer of coal, data show. According to latest figures from nationmaster, China's coal consumption was 1.3 billion short tons. The number is 24 percent above that of the U.S., which came in second place.
On the recent news, companies like Patriot Coal (NYSE: PCX), Cliffs Natural (NYSE: CLF), Alpha Natural (NYSE: ANR), Arch Coal (NYSE: ACI), and Peabody (NYSE: BTU) have been getting hit. Patriot is leading the march lower today, down over 5 percent on the session, while most other miners are off between 3 percent and 5 percent.
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