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.
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcoal.com/coal/16042015/pira-energy-weekly-coal-market-2180/
