Coal 02 (Jul 12 - Dec 25)

Re: Coal 02 (Jul 12 - Dec 15)

Postby winston » Sat Nov 28, 2015 6:22 pm

Coal-sector fund KOL sinks to a new all-time low.
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Re: Coal 02 (Jul 12 - Dec 15)

Postby behappyalways » Fri Dec 04, 2015 10:40 am

The world has 118million metric tons of coal it doesn't need

http://www.bloomberg.com/news/articles/ ... esn-t-need
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Re: Coal 02 (Jul 12 - Dec 15)

Postby winston » Fri Dec 11, 2015 8:59 pm

MORE BAD NEWS FOR COAL

Today, we check in on the state of the coal market... and as you'll see, it's not pretty...

We've written about the "dirty" commodity many times over the years. As regular readers are aware, the sector has been trending lower for a long time now.

The popular coal fund KOL and the Dow Jones U.S. Coal Index are both down more than 50% this year. Natural gas is one of the main sources for electricity in the U.S. (generating more electricity than coal this past summer).

We can see this idea clearly by looking at the performance of Peabody Energy (BTU). Peabody is the largest coal company in the world. It's a good way to gauge what's going on in the industry. After jumping higher in late August, BTU shares have quickly gotten back on the losing track.

As you can see from the chart below, shares have plummeted more than 60% in the last two months alone and have just touched a new all-time low. Until this trend gets "less bad," it's wise to stay away from the sector...

Source: Daily Wealth
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Re: Coal 02 (Jul 12 - Dec 15)

Postby winston » Wed Dec 30, 2015 9:49 pm

Local Governments in Coal-Rich Chinese Province Can’t Meet Payroll

By Frank Fang

Source: Epoch Times

http://www.theepochtimes.com/n3/1929062 ... campaign=3
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Re: Coal 02 (Jul 12 - Dec 15)

Postby winston » Tue Jan 12, 2016 10:26 pm

Coal company Peabody Energy is getting clobbered… shares have dropped around 60% since November.
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Re: Coal 02 (Jul 12 - Dec 15)

Postby winston » Wed Jan 13, 2016 7:35 am

U.S. coal production has collapsed over the past decade

After hitting a high-water mark in 2008, coal production has steadily declined, with losses accelerating since 2012.

• Coal production is estimated to have hit 900 million short tons in 2015, a massive 10 percent decline from just one year earlier. That is also the lowest level since 1986.

• There are a variety of factors contributing to the decline. One of the most important reasons is plummeting international coal prices, which came because of too much supply.

• But there are contributing factors unique to the United States that has also gone a long way to killing coal: cheap shale gas and stricter environmental regulations.

• Central Appalachia is bearing the brunt of the losses due to higher operating costs relative to other regions, especially the Powder River Basin.

• Coal exports likely won’t be a savior for struggling mining companies. U.S. coal exports to China and Europe actually declined in 2015 because of weak demand.

Source: Oil Price Intelligence
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Re: Coal 02 (Jul 12 - Dec 15)

Postby winston » Mon Jan 18, 2016 9:30 pm

Coal firm Peabody Energy falls nearly 85% over the last three months.
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Re: Coal 02 (Jul 12 - Dec 16)

Postby winston » Mon Jan 25, 2016 8:06 am

China to cut crude steel production amid capacity glut

BEIJING: China will cut crude steel production capacity by 100-150 million tonnes and reduce the size of the coal industry to fight a capacity glut, the government said.

The State Council, or cabinet, led by Premier Li Keqiang, made the decisions at a meeting on Friday, according to a statement on the Chinese government’s main web portal.

The State Council reiterated an earlier decision tohalt in principle the approval of new coal mines and additional capacity, the statement said.

It said the government would reduce coal production capacity “to a large extent”.

The government will also increase policy support including special awards to companies restructuring to eliminate overcapacity and affected workers in both industries.

China’s government is pushing to erode overcapacity in the steel industry, as the country aims to shift economic growth towards more consumption rather than heavy investment. The nation’s massive steel sector is said to have surplus capacity of about 300 million tonnes.

China’s crude steel output fell 2.3% to 803.8 million tonnes in 2015 from the previous year, government data showed on Tuesday, the first drop in more than three decades as the economy of the world’s top producer slows.

The statement did not give a time frame for cutting steel production or an amount by which it will cut coal capacity.

China announced in December it would stop approving new coal mines for three years, but the move was viewed as likely to make barely a dent on the world’s biggest coal industry given its vast existing production capacity.

Some estimates suggest China’s surplus capacity could be as high as 2 billion tonnes of coal a year – more than 50% of 2015 output – in a country with nearly 11,000 mines.

Source: Reuters
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Re: Coal 02 (Jul 12 - Dec 16)

Postby winston » Fri Mar 11, 2016 4:51 am

China caps coal consumption at 5 billion tonnes by 2020 amid fears energy demand may rebound

Source: SCMP
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Re: Coal 02 (Jul 12 - Dec 16)

Postby winston » Fri Mar 25, 2016 8:29 am

Fitch: China's Coal Sector Has 3.3B Tonnes of Excess Capacity

In the short to medium term, China's coal sector is likely to remain under pressure due to structural weaknesses in demand and overcapacity, said Fitch Ratings.

The credit agency expects the overall financial health of the sector to weaken further over the next two years.

Fitch estimates that the Chinese coal sector will have up to 3.3 billion tonnes of excess capacity in the forthcoming two years.

This calculation is based on 1.4 billion tonnes of existing idle capacity at end-2014, together with another 1.9 billion tonnes of capacity under construction.

Source: AAStocks Financial News
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