International coal supply disruptions create earnings for the U.S. coal industry

Filed in archive News on February 1, 2008

Citigroup forecast that the pattern of strong coal prices and weak corporate earnings will continue across the sector.

In an analysis published Tuesday, Citigroup mining analysts John H. Hill and Paul Cheng noted several key major disruptions to the global coal supply chain in recent weeks including:

- The worst snow storms in five decades paralyzing China's coal supply this week
- Heavy rains and flooding disrupting coal production and transportation in the Australian mining state of Queensland last week
- Flooding-related power outages that have paralyzed the South African mining industry for the past week

It seems that there is a good future at least now for U.S. coal produce: "Coal has been following a series of international supply disruptions, that potentially open further export opportunities for U.S. miners," Citigroup's analysis determined. "


(Source: MineWeb.com)