This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Coal Mining Companies Fall On Demand, Price Worry

The Associated Press

Shares of several mining companies fell Monday after a government report showed some spot coal prices fell last week.

The Energy Department said that prices fell to $8.90 per 8,800 British thermal unit as of Friday from $10.50 per 8,800 BTU the previous week for coal produced in the Powder River Basin region of Wyoming.

Spot prices fell to $35.50 per 11,700 BTU as of Friday from $40.55 per 11,700 BTU in the Uinta Basin of Colorado the previous week. Prices remained unchanged for coal produced in the Appalachian and Illinois basins, the Energy Information Administration said.

It's the latest sign of challenges that have faced the coal industry during the first quarter. A mild winter has kept demand weak for electricity, which has sent natural gas prices down sharply. Some power plants have switched to natural gas from coal to take advantage of the lower priced fuel for generating electricity.

The situation isn't likely to change much unless there is a really hot summer that will increase demand for electricity to run air conditioners in homes and businesses, Johnson Rice & Co. analyst Bill Burns said.

The coal industry's other primary customers are steel companies, which are coping with weaker demand, higher inventories and higher raw material costs.

In addition, coal companies also have been hurt by concerns about slowing growth in China, the world's second-largest economy, Burns said. China is a huge importer of coal.

By afternoon, shares of Alpha Natural Resources Inc. fell 44 cents, or 2.8 percent, to $15.54; Walter Energy Inc. dropped $1.36, or 2.2 percent, to $61.36; Arch Coal Inc. declined 31 cents, or 2.7 percent, to $11.35; Peabody Energy Corp. fell 31 cents to $29.88; Cliffs Natural Resources dropped 98 cents to $69.80 and James River Coal Co. declined 42 cents, or 7.1 percent, to $5.47.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs