Coal Call

Ted O’Brien coal offered some coal market insights in a UBS conference call at Doyle Trading Consultants (Be sure to click play).  Mr. O’Brien comments in detail on thermal coal, production cutbacks, exports, natural gas and coking coal.  Great stuff!

A picture is painted similar to what what is being reported on ISA.  US production cutbacks have been meaningful and substantial, with the high cost mines being closed; many are closing on a permanent basis.  PBR coal (Think CLD) and Illinois basin (think ARLP) look good.  International thermal and coking coal markets are weak.  The idea of the ‘strong taking from the weak’ thesis in this downturn sounds ever better.

PBR coal jumped last week:  EIA.  Historical coal prices by region.  EIA

CLD chart.  ACI chart posted with the comment ‘coal sucks’ attached.