Goldman cautious on coal

|By:, SA News Editor

"We still see 15-20 MM MT oversupply and believe wider supply reductions/ rationalizations will be needed as demand growth for met coal slows," Goldman's Brian Singer says, explaining his view that "the path to a recovery in metallurgical coal prices is likely to be slow."

As for thermal coal, Singer says that while recovering natural gas prices will serve to buoy thermal, "demand in the US [will be] challenged long-term by coal plant retirements."

Some of Goldman's Buy-rated coal stocks: SunCoke Energy (SXC), Cloud Peak Energy (CLD).