Demand for coal in China may peak as soon as this year, according to Bloomberg, which could further hurt coal miners such as Cliffs Natural Resources.
Investments in coal may be hurt by falling costs for renewable energies and global warming regulation, the Carbon Tracker Initiative said.
"There are a host of signals that Chinese demand for coal is close to peaking which will cause a seismic shift in the market," Carbon Tracker Initiative CEO Anthony Hobley wrote in a report. "This is potentially a risky business for investors."
TheStreet Ratings team rates CLIFFS NATURAL RESOURCES INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLIFFS NATURAL RESOURCES INC (CLF) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, poor profit margins, weak operating cash flow and generally high debt management risk."