NEW YORK (TheStreet) -- At a recent Coaltrans Asia conference in Bali, large coal players revealed that with Japan's economy showing signs of recovery, coal prices may rebound in the second half of the year as producers are geared to scale up operations to cope with the surging demand.
Meanwhile, Indonesian and Australian coal producers are ramping up operations to meet Asia's burgeoning coal demand for power, especially with several thermal power plants coming online in India. An industry expert said at the conference that Japan's thermal coal demand for 2011 has narrowed by only 10 million tons to 110 million tons, based on demand recovery from power plants that were not damaged.
Growing coal demand from China and India, powered by rising electricity demand, is fuelling the Asian coal rush. China is facing its worst power deficit in years and its dependence represents a major portion of the coal demand, while India's electricity demand is seen rising 56% by 2017.
Industry analysts foresee growing overseas demand for the two types of coal produced in Appalachia boosting U.S. mine operators' profits in the upcoming quarters, despite U.S. electric companies seeking to use more natural gas. India and Europe are forecast to import more of the dirtier-burning coal used by electric plants. In addition, rising prices of metallurgical coal used in the manufacture of steel will boost companies' profits as it is also used by developing nations to expand their infrastructure.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV