Against a backdrop of mid-US$2/MMBtu NG pricing and stronger nuclear output, power sector coal burn looks to plummet to depths not seen since 1986.
As gas production remains strong, significant coal-to-gas switching over the next six months is expected by PIRA, resulting in a spike in coal stock prices.
The international coal market continues to stagnate as well, increasing financial pressures on U.S. coal producers. Additional bankruptcies look inevitable at this point.