Arch Coal turns around after optimistic comments about 2014 outlook

Arch Coal (ACI +2%) shares turn green after management makes positive comments about the thermal coal market during this morning's earnings call.

ACI reported a larger than expected Q4 loss, but expects U.S. thermal coal markets to tighten further this year, as several factors including favorable weather trends, healthier economic activity and elevated natural gas prices should ensure that the prices of most U.S. thermal coal is competitive.

The same can't be said for metallurgical coal, as overseas markets remain weak, ACI says, but production of higher cost met coal would ease and cause markets to tighten in the future.

Other coal miners also are higher: CLD +3.9%, WLT +3.7%, WLB +3.4%, ANR +2.6%, RNO +2.1%, CNX +1.5%, BTU +0.2%.

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Comments (2)
  • slash32is4
    , contributor
    Comments (266) | Send Message
    also said met coal will turn up fast when it does turn... also thought improvement in met coal in around 2 quarters
    4 Feb 2014, 12:52 PM Reply Like
  • 6151621
    , contributor
    Comments (1172) | Send Message
    This maybe true but all the coal plays have been saying met or thermal will turn up for over a year. As a result they have been oversupplying the market and suppressing the prices (aka shooting themselves in the foot).
    4 Feb 2014, 04:25 PM Reply Like
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