U.S. coal exports face waning Chinese demand: NY Times


"European demand is soft, and the economies of the developing world are slowing. But the main reason for slumping [coal] prices is China’s softening demand growth," the NY Times' Clifford Krauss says, in what is a decidedly bearish article for U.S. coal producers.

Thursday's announcement that China is banning the construction of new coal-fired plants in and around Beijing, Shanghai, and Guangzhou is just the latest in a series of initiatives the country has taken to curb coal imports.

This is bad news for a U.S. coal industry which was depending on "additional exports [to] shield [it] from slipping domestic demand caused by cheap natural gas and mounting regulations."

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Comments (14)
  • nemonemo
    , contributor
    Comments (337) | Send Message
     
    Haha SeekingFraud aka SeekingAlpha once again at it. Their editorial have short position in coal and does mis-using it.
    14 Sep 2013, 09:02 PM Reply Like
  • counterpoint123
    , contributor
    Comments (527) | Send Message
     
    What happens when natural gas prices jump higher? That's right coal use will expand.
    14 Sep 2013, 09:20 PM Reply Like
  • nemonemo
    , contributor
    Comments (337) | Send Message
     
    Coal usage is already back to normal. EIA published report last week. SeekingFraud decided not to publish any good report. It hurt their short position.
    14 Sep 2013, 10:00 PM Reply Like
  • tibialexpert
    , contributor
    Comments (45) | Send Message
     
    I am wondering how the Chinese are going to make steel... maybe they will use Apple iPhones. WLT.
    15 Sep 2013, 01:37 AM Reply Like
  • nemonemo
    , contributor
    Comments (337) | Send Message
     
    No they will import Obama's farts.
    15 Sep 2013, 02:03 AM Reply Like
  • wil3714
    , contributor
    Comments (2273) | Send Message
     
    Steel demand is growing in US, they have the Bay Bridge which has shipped tons of steel from China & industrial projects in SE US.

     

    http://yhoo.it/15EhQIc
    15 Sep 2013, 02:11 AM Reply Like
  • tibialexpert
    , contributor
    Comments (45) | Send Message
     
    hahaha.. that's a better import than my Iphones although it maybe rather difficult or expensive to catch that wind... hahahaha
    15 Sep 2013, 05:50 AM Reply Like
  • wil3714
    , contributor
    Comments (2273) | Send Message
     
    http://bit.ly/VCxx0F

     

    I can safely say China maybe softening demand to some point but from extreme levels. This article states China invested $67.7B in clean energy, a 20% increase from 2011. But still plan to build ut 360 coal plants w/ 557GW hours. The chart also shows China consumes about 47% of global demand & isnt stepping up nuclear plants because of the Fukishima disaster as more protests will take place by people fearful of another disaster, producing more contaminated wastewater & leaking radiation into waters.
    15 Sep 2013, 05:23 AM Reply Like
  • larry56love
    , contributor
    Comments (28) | Send Message
     
    o
    15 Sep 2013, 09:02 AM Reply Like
  • Mike847
    , contributor
    Comments (64) | Send Message
     
    The Chinese anti-pollution policies are extremely positive for exports of US coal with higher world coal prices soon.

     

    1. In May 2013 China announced new higher quality coal import standards. These new standards were protested by the Chinese utilities because of cost. While these new standards are being negotiated now, when implemented Indonesian coal will be almost eliminated with Australian and US high quality coal increasing.
    2. In 2013, there have been mass closings of small Chinese mines mainly because money has dried up to finance their operations. The Chinese government approves of this trend since these mines are dangerous, produce low quality coal, and are not economical. The announced policy is that larger mines are the future. These mine closings will increase China coal prices.
    3. Another important policy statement is that the transportation of coal needs to be rationalized. Coal should be burned closer to the mines in the interior west while the eastern coastal cities should import more coal.

     

    Basically, the Chinese are going to spend money to buy higher quality imported coal to reduce pollution. The primary sources of this coal will be Australia and the US.
    15 Sep 2013, 11:40 AM Reply Like
  • deercreekvols
    , contributor
    Comments (9528) | Send Message
     
    Looks like it is time to buy more shares of ACI this week.

     

    Those who really believe that coal is going away have sipped too much of the anti-coal punch. The thought that China is reducing its coal consumption is laughable. How many new coal-fired power plants are being built in China? Plans to build 363 plants were revealed over a year ago. The only issue seems to be building in water-stressed regions. Clearly, this problem needs to be resolved. If the anti-coal folks can explain how building 363 plants will reduce coal consumption in China, it is time to start talking.

     

    I am so glad that these "updates" hit the SA wire every few weeks.

     

    Coal is dead. Coal is dead. Keep repeating this while I keep buying shares.

     

    Thumbs-up from me (likes) to all who posted above.
    15 Sep 2013, 08:24 PM Reply Like
  • sethmcs
    , contributor
    Comments (3549) | Send Message
     
    A drop below $4 for ACI would be welcomed by me. I only bought 1/4 of a position before it took off to $5. Already have full position BTU and ANR.
    16 Sep 2013, 03:53 AM Reply Like
  • freeman8201
    , contributor
    Comments (824) | Send Message
     
    pound per pound coal is the cheapest form of electricity.
    16 Sep 2013, 02:18 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9528) | Send Message
     
    Forgotten in the anti-coal debate is the fact that the rest of the world does not operate like the US when it comes to finding and using the cheapest forms of energy.
    Regulations? I don't believe that China or India will allow saving the environment to interfere with using coal.
    Where were the regulations when the steel boom was taking place in the US? Downtown Pittsburgh was as dark as midnight in the middle of the day from all of the burning coal in the steel factories. The photographs are remarkable.
    17 Sep 2013, 08:49 PM Reply Like
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