"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."
ETF - KOL