---
title: "Tons of Coal, part III: World Fundamentals"
url: https://independentstockanalysis.com/tons-of-coal-part-iii-world-fundamentals/
description: "The chart is from the Economist . Future electricity generation demand just for air conditioning, and thus for coal, is wildly bullish ( Guardian ). Wind…"
published: 2012-07-20
updated: 2012-07-20
---

# Tons of Coal, part III: World Fundamentals

Published 2012-07-20

Posted on

by

J.J. Butler

The chart is from the [Economist](http://www.economist.com/blogs/graphicdetail/2012/07/daily-chart-9). Future electricity generation demand just for air conditioning, and thus for coal, is wildly bullish ([Guardian](http://www.guardian.co.uk/environment/2012/jul/10/climate-heat-world-air-conditioning)). [Wind](http://www.smartbrief.com/news/awea/storyDetails.jsp?issueid=8317B35B-CEAC-4BC7-8D1B-E2C008B6FF26&copyid=078E99E8-E650-4031-B4E7-66A5F8065BDE&campaign=twitter&ref=twitter078E99E8-E650-4031-B4E7-66A5F8065BDE) and solar are not going to get the job done. China is always the elephant in the room ([Reuters](http://in.reuters.com/article/2012/07/19/china-commodities-gdp-idINL3E8IA36J20120719)).

The massive scale with which industrial activity in China occurs is mind boggling ([Platts](http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Coal/8509695)). India is big too and expects to see large increases in coal imports: [Mining Weekly](http://www.miningweekly.com/article/indian-coal-import-forecast-to-rise-to-185mt-by-2017-support-infrastructure-still-missing-2012-07-17). India solar at [Business Week](http://www.businessweek.com/news/2012-07-12/welspun-says-india-set-to-double-solar-capacity-target).

Meanwhile, China coal market likely to see oversupply amid weak demand in H2 at [Platts](http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Coal/8539733).

Currently industry profits are on the met coal side, but there is concern over the steel-making coal going forward. [Mining](http://www.mining.com/2012/07/08/steel-industry-fears-demand-has-plateaud/)

Off a small base, US coal exports still on upswing: government data at [Platts](http://platts.com/RSSFeedDetailedNews/RSSFeed/Coal/6485069).

Small players are having a tough time in China too: [WCT](http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20120719000015&cid=1102&MainCatID=0&utm_source=buffer&buffer_share=a0584). Colombian coal miners’ strike risks Glencore operation at [Mining](http://www.mining.com/2012/07/20/colombian-coal-miners-strike-risks-glencores-operations/?utm_source=twitterfeed&utm_medium=twitter). Rio Tinto is cutting costs amid low Chinese thermal coal pricing: [Reuters](http://in.reuters.com/article/2012/07/19/rio-jobs-idINL4E8IJ0SQ20120719).

I hope you enjoyed the coal series this afternoon. Expect a whole lot more coal commentary in the future. I smell opportunity.