This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Coal Mining Companies Fall On Demand, Price Worry

Stocks in this article: ACI ANR BTU JRCC WLT

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs