---
title: "More Coal"
url: https://independentstockanalysis.com/more-coal/
description: "Cooling related power demand remains strong ( Bentek ). So natural gas is higher on a tough market day, dragging the coal sector to near flat. US…"
published: 2012-07-23
updated: 2012-07-23
---

# More Coal

Published 2012-07-23

Posted on

by

J.J. Butler

Cooling related power demand remains strong ([Bentek](http://www.bentekenergy.com//BentekTopStories.aspx?e=3&rpt=163&dt=7/23/2012)). So natural gas is higher on a tough market day, dragging the coal sector to near flat. US utilities may return to coal as natgas prices rise at [Mining Weekly](http://www.miningweekly.com/article/us-utilities-may-return-to-coal-as-natgas-prices-rise-2012-07-20). Peabody reports second quarter results tomorrow.

Keep your eyes on the rails ([Yardeni](http://blog.yardeni.com/2012/07/railroads.html)). Coal Rail Car Loadings Are Now Higher Than Last Year at [Seeking Alpha](http://seekingalpha.com/instablog/1592341-titan06/873471-coal-rail-car-loadings-are-now-higher-than-last-year). Coal prices held quite steady last week: [EIA](http://www.eia.gov/coal/news_markets/).

Euro Coal-Physical prices rise, China returns to spot market at [Reuters](http://www.reuters.com/article/2012/07/20/idUSL6E8IKF6Q20120720).

“China’s imports of coal in June jumped by 98% year-on-year to 27.19 million mt, China Customs data released over the weekend showed…In the first half months of 2012, China imported a total of 139.85 million mt of coal, up 66% year-on-year.” The thermal and coking coal mix is interesting too at [Platts](http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Coal/8545492).

Japan restarting nuclear generation speaks loudly to the availibility of affortable energy at [Reuters](http://www.reuters.com/article/2012/07/18/us-japan-nuclear-restart-idUSBRE86H0CO20120718). Imagine 100,000 protester ([Reuters](http://in.reuters.com/article/2012/07/18/japan-nuclear-idINDEE86H03020120718)). Rich South Korea still uses oil in electricy generation at [Platts](http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Oil/8545468).

One ametuer explains coal well: [Investor Village](http://www.investorvillage.com/smbd.asp?mb=5028&mn=25658&pt=msg&mid=11922640).

Surging coal exports boost Kinder, bother Democrats at [Fuel Fix](http://fuelfix.com/blog/2012/07/19/surging-coal-exports-boost-kinder-bother-democrats/). (Off topic: Matt paraphrased the Kinder conference call at [IV](http://www.investorvillage.com/smbd.asp?mb=5028&mn=25680&pt=msg&mid=11928792))

While much of the world has a large inventory of coal, I believe India remains coal short. Yet in playing games with price, Indian buyers reported defaulting on South Africa, Indonesia thermal coal cargoes at [Platts](http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Coal/8539985).

If they are right, run from the coal sector: Fitch: Coal sector has little chance of recovery before 2014 at [SNL](http://www.snl.com/InteractiveX/Article.aspx?cdid=A-15335447-12845).