Coal on Watch as Top-Exporter Expected to See Lower Prices in June (ACI) (CNX) (BTU)
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Coal miners are lower Friday amid speculation that prices might see near-term pressure from one of worlds leading exporters.
Bloomberg reported earlier that "bituminous coal with a calorific value of 5,800 kilocalories a kilogram and as much as 2 percent sulfur averaged $69 a metric ton in the week ended June 7th." The price is down from $69.70 for the week ended May 24th.
On June 11th, the Directorate General of Coal and Minerals cut its benchmark coal price for June to $84.87 per ton, from $85.33 per ton in May.
Bloomberg said that thre of four surveyed analyst predict a drop in the coming weeks for Indonesian prices, while the fourth declined a response.
"Indonesian prices are on a gross-as-received and free-on-board basis at Kalimantan or Sumatra, Indonesia’s two main coal-producing regions," Bloomberg said.
It wasn't made clear what the cause for the dip in prices might be, but given that Indonesia is the top exporter of this type of coal, segment peers are on watch.
Lower today are Walter Energy (NYSE: WLT), Alpha Natural (NYSE: ANR), Peabody (NYSE: BTU), Arch Coal (NYSE: ACI), and CONSOL Energy (NYSE: CNX). The Market Vectors Coal ETF (NYSE: KOL) ETF is also lower today amid the report.
Bloomberg reported earlier that "bituminous coal with a calorific value of 5,800 kilocalories a kilogram and as much as 2 percent sulfur averaged $69 a metric ton in the week ended June 7th." The price is down from $69.70 for the week ended May 24th.
On June 11th, the Directorate General of Coal and Minerals cut its benchmark coal price for June to $84.87 per ton, from $85.33 per ton in May.
Bloomberg said that thre of four surveyed analyst predict a drop in the coming weeks for Indonesian prices, while the fourth declined a response.
"Indonesian prices are on a gross-as-received and free-on-board basis at Kalimantan or Sumatra, Indonesia’s two main coal-producing regions," Bloomberg said.
It wasn't made clear what the cause for the dip in prices might be, but given that Indonesia is the top exporter of this type of coal, segment peers are on watch.
Lower today are Walter Energy (NYSE: WLT), Alpha Natural (NYSE: ANR), Peabody (NYSE: BTU), Arch Coal (NYSE: ACI), and CONSOL Energy (NYSE: CNX). The Market Vectors Coal ETF (NYSE: KOL) ETF is also lower today amid the report.
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