Breadnight

U.S. Future in Coal Burns Bright

Some of you are way off in thinking that US coal producers will be exporting to China. The increased demand in China will come from Australia and (decreasingly) Indonesia. I can only think of 1 US listed pure play coal producer that has assets in Australia -Peabody (BTU).

The increased demand from China, in my opinion, will not influence US coal supplies/inventories. The two markets are independent enough, I think to have much affect on each other.

When thinking about the China demand (which is/will be huge) you must ask yourself "what type of coal fired boilers are bing built in China today?" Each boiler is built to a specific coal type, quality, moisture, and sulphur content...

Once you find out what coal specs the Chinese boilers are being built for, you can figure out what coal regions will benefit.

BTW, I have made huge coin on JRCC puts, stay away from that one, and any other coal producer that is not making money currently.

Someone needs to help me with the Chinese coal fired power plants/boiler research... any takers??