Showing posts with label Coal Prices. Show all posts
Showing posts with label Coal Prices. Show all posts
Friday, October 19, 2012
Parets Likes Natural Gas, Coal, Over Crude
Saying crude oil at this time "is a mess," J.C. Parets said in regard to energy and commodities in general, investors need to look elsewhere for gains, as he sees the fall from $100 as a trend that is likely to continue at this time.
Parets, who is the founder of Eagle Bay Capital, sees the energy place to be as natural gas, and says coal is also worth a look, as it could move up on the sails of natural gas.
He said, "If we're right on natural gas and continue to see higher prices, I think we should continue to see higher prices for coal as well."
The trend that needs to be followed at this time in the sector is natural gas versus oil, not crude oil in and of itself.
The reason natural gas is so appealing to Parets is it continues to be way below its historic 10-year average in relationship to oil, which has been about 10-to-1. In the spring of 2012 it jumped to 54-to-1.
Tuesday, June 8, 2010
JPMorgan (NYSE:JPM) Denies $250 Million Coal Losses
Reports that JPMorgan (NYSE:JPM) has lost about $250 million in the quarter in losing coal bets is being denied by the giant financial institution, calling the reported losses, which originated in the New York Post, incorrect.
JPMorgan spokeswoman Kristin Lemkau said the story wasn't accurate, adding there would be no further comment, while the bank outlet in London also said they don't comment on trading positions taken by the company.
The question is whether or not the story was correct, but just too exuberant in its losses reported on for the company. Maybe it was huge losses but just not to the level mentioned.
Even if the numbers were correct, it wouldn't have much impact on the bottom line of the company, as shown by the market shrugging off the news as pretty much irrelevant.
What could result from the alleged losses would be the way politicians may use it to try to shut down proprietary trading at the financial institutions.
In unrelated JPMorgan news, they had their 12-month price target slashed by analyst Richard Bove from $55 to $47.
JPMorgan spokeswoman Kristin Lemkau said the story wasn't accurate, adding there would be no further comment, while the bank outlet in London also said they don't comment on trading positions taken by the company.
The question is whether or not the story was correct, but just too exuberant in its losses reported on for the company. Maybe it was huge losses but just not to the level mentioned.
Even if the numbers were correct, it wouldn't have much impact on the bottom line of the company, as shown by the market shrugging off the news as pretty much irrelevant.
What could result from the alleged losses would be the way politicians may use it to try to shut down proprietary trading at the financial institutions.
In unrelated JPMorgan news, they had their 12-month price target slashed by analyst Richard Bove from $55 to $47.
Wednesday, May 12, 2010
Duke Energy (NYSE:DUK) Says Coal Prices will Rise
Duke Energy (NYSE:DUK) said the price of coal will rise over the next 12 months, citing the accident involving Massey Energy’s (NYSE:MEE) Upper Big Branch coal mine as one of the major factors in the increase in coal prices since the middle of April of 10 percent.
Actions from the Environmental Protection Agency are also the culprit in increasing coal prices, as they are demanding stricter regulations for mine water permits, and have proposed revoking a mining permit of Arch Coal (NYSE:ACI) as well, pushing prices higher.
It seems the government may be doing some of this deliberately in order to push its own energy agenda, which will cost far higher than the price of coal and other energy, but can't compete unless existing energy resources move up in price.
Consequently coal prices are expected to continue rising into 2012.
Actions from the Environmental Protection Agency are also the culprit in increasing coal prices, as they are demanding stricter regulations for mine water permits, and have proposed revoking a mining permit of Arch Coal (NYSE:ACI) as well, pushing prices higher.
It seems the government may be doing some of this deliberately in order to push its own energy agenda, which will cost far higher than the price of coal and other energy, but can't compete unless existing energy resources move up in price.
Consequently coal prices are expected to continue rising into 2012.
Wednesday, May 5, 2010
Xstrata (LSE:XTA) Led by Copper and Coal
Xstrata (LSE:XTA) announced today that production for the first quarter was up, led by copper and coal.
Copper and coal is expected to account for just under 75 percent of Xstrata's earnings in 2010, with copper leading the way with 38 percent, and coal just behind it at 36 percent.
For the first quarter, copper production rose by 3 percent, while coal production increased by 9 percent, mostly on solid production in Australia.
Analysts are looking for Xstrata's earnings to surge 93 percent as share on a continual rise in commodity prices.
Copper and coal is expected to account for just under 75 percent of Xstrata's earnings in 2010, with copper leading the way with 38 percent, and coal just behind it at 36 percent.
For the first quarter, copper production rose by 3 percent, while coal production increased by 9 percent, mostly on solid production in Australia.
Analysts are looking for Xstrata's earnings to surge 93 percent as share on a continual rise in commodity prices.
Saturday, April 10, 2010
Coal Prices Up On Massey (NYSE:MEE) Mine Explosion
Coal prices soar after Massey mine explosion
The explosion at a Massey Energy (NYSE:MEE) mine has caused the price of metallurgical coal to increase as a tight coal market will continue to struggle with the loss of coal supply.
Now that the final four miners' bodies have been found, bringing the total loss of life to 29, it becomes the worst mining accident since 1970.
It'll take months to find the cause behind the explosions, and that will drag on the coal market for some time.
Metallurgical coal is a higher quality product, and demand is high for it, especially in Asia.
Estimates for the Upper Big Branch mine was to ship about 1.6 million tons of metallurgical coal in 2010, about 3 percent of all production in the U.S., based on numbers from 2009.
Even with increased production at other mines, Massey said it's doubtful they're be able to replace what the Upper Big Branch mine would have produced.
With spot prices already increasing by 22 percent, steelmakers will be under pressure, determined by whether or not they'll have to eat the higher prices and have their margins fall, or they are able to pass them on to their customers.
The explosion at a Massey Energy (NYSE:MEE) mine has caused the price of metallurgical coal to increase as a tight coal market will continue to struggle with the loss of coal supply.
Now that the final four miners' bodies have been found, bringing the total loss of life to 29, it becomes the worst mining accident since 1970.
It'll take months to find the cause behind the explosions, and that will drag on the coal market for some time.
Metallurgical coal is a higher quality product, and demand is high for it, especially in Asia.
Estimates for the Upper Big Branch mine was to ship about 1.6 million tons of metallurgical coal in 2010, about 3 percent of all production in the U.S., based on numbers from 2009.
Even with increased production at other mines, Massey said it's doubtful they're be able to replace what the Upper Big Branch mine would have produced.
With spot prices already increasing by 22 percent, steelmakers will be under pressure, determined by whether or not they'll have to eat the higher prices and have their margins fall, or they are able to pass them on to their customers.
Monday, March 29, 2010
Coal Prices Rise on BHP Billiton (ASE:BHP) Closing Hay Point
BHP Billiton Hay Point Coal Prices
Spot prices for coal rose after the closure BHP Billiton's (ASE:BHP) Hay Point terminal in Queensland.
Top quality coal had an offer price of $220 to $225 originally, but has been sold for between $240 to $250 a ton.
BHP declared force majeure on shipments from the Hay Point terminal after it had been damaged by cyclone ului, and has remained closed since March 11.
Hay Point is included in the venture between BHP and Mitsubishi named the BHP Mitsubishi Alliance, which is the largest producer of coking coal in the world for the seaborne market. Of the approximate 58 million tons produced annually, about 45 million tons are exported through Hay Point.
Spot prices for coal rose after the closure BHP Billiton's (ASE:BHP) Hay Point terminal in Queensland.
Top quality coal had an offer price of $220 to $225 originally, but has been sold for between $240 to $250 a ton.
BHP declared force majeure on shipments from the Hay Point terminal after it had been damaged by cyclone ului, and has remained closed since March 11.
Hay Point is included in the venture between BHP and Mitsubishi named the BHP Mitsubishi Alliance, which is the largest producer of coking coal in the world for the seaborne market. Of the approximate 58 million tons produced annually, about 45 million tons are exported through Hay Point.
Wednesday, March 10, 2010
Teck Resources (NYSE: TCK) Upgraded to Buy
Teck Resources Upgraded to Buy
Teck Resources (NYSE: TCK) was upgraded to buy from hold by analyst Orest Wowkodaw of Canaccord Adams, primarily based on short-term increases in coking coal prices, and the assumption copper prices will continue to rise.
The share price target was moved from $43 to $50 also for the same reasons.
Most of this was based on reports Japanese steelmakers agreed to pay a price increase of 55 percent for coking coal from April to June.
Operational concerns were outweighed by the positive outlook on price increases for Teck Resources.
Teck Resources Upgraded to Buy
Teck Resources (NYSE: TCK) was upgraded to buy from hold by analyst Orest Wowkodaw of Canaccord Adams, primarily based on short-term increases in coking coal prices, and the assumption copper prices will continue to rise.
The share price target was moved from $43 to $50 also for the same reasons.
Most of this was based on reports Japanese steelmakers agreed to pay a price increase of 55 percent for coking coal from April to June.
Operational concerns were outweighed by the positive outlook on price increases for Teck Resources.
Teck Resources Upgraded to Buy
Monday, March 8, 2010
Coals Future Looks Great
The future of coal
Even though it has become politically correct to malign coal, and media loves to cover its so-called "clean" energy alternatives, which are anything but real alternatives, coal will continue to be a major force in generating electricity for decades to come.
The thing to understand with coal, is even if it's not as important in western countries, in general it's going to be a ongoing force around the world for emerging and developing nations for a long time, as they hunger for sources of energy that are affordable and minimally meet their needs.
So don't believe the majority of what you read in the media about the demise of coal. It's not even close to going away or becoming irrelevant, and it is well worth the time to check out the numerous companies still having a major presence with coal, as demand will only increase and not decrease, no matter what the mainstream media tries to convince you of.
The future of coal
Even though it has become politically correct to malign coal, and media loves to cover its so-called "clean" energy alternatives, which are anything but real alternatives, coal will continue to be a major force in generating electricity for decades to come.
The thing to understand with coal, is even if it's not as important in western countries, in general it's going to be a ongoing force around the world for emerging and developing nations for a long time, as they hunger for sources of energy that are affordable and minimally meet their needs.
So don't believe the majority of what you read in the media about the demise of coal. It's not even close to going away or becoming irrelevant, and it is well worth the time to check out the numerous companies still having a major presence with coal, as demand will only increase and not decrease, no matter what the mainstream media tries to convince you of.
The future of coal
Thursday, February 25, 2010
Rand Paul on Kentucky Coal
Rand Paul on Coal
Responding to a smear campaign from his fading political opponent, Kentucky Secretary of State Trey Grayson, Rand Paul defended himself against accusations from Grayson that he was not a friend of the coal mining industry, which is a strong part of the economy of eastern Kentucky.
In a TV interview, Paul responded to the Grayson ads saying, "I'm against Cap and Trade. I'm for reigning in the EPA because I think they're limiting the permit process. I'm for allowing mountain top removal of coal. That doesn't sound like I'm very anti-coal, and yet he takes a quote out of context from two years before, where I say that there are cleaner forms of energy that we will eventually evolve to. That doesn't mean I'm against coal."
Paul also went on the offensive, showing a video of Grayson supporting bringing in nuclear powered plants after the coal-fired plants are taken out of the picture.
Rand Paul on Coal
Responding to a smear campaign from his fading political opponent, Kentucky Secretary of State Trey Grayson, Rand Paul defended himself against accusations from Grayson that he was not a friend of the coal mining industry, which is a strong part of the economy of eastern Kentucky.
In a TV interview, Paul responded to the Grayson ads saying, "I'm against Cap and Trade. I'm for reigning in the EPA because I think they're limiting the permit process. I'm for allowing mountain top removal of coal. That doesn't sound like I'm very anti-coal, and yet he takes a quote out of context from two years before, where I say that there are cleaner forms of energy that we will eventually evolve to. That doesn't mean I'm against coal."
Paul also went on the offensive, showing a video of Grayson supporting bringing in nuclear powered plants after the coal-fired plants are taken out of the picture.
Rand Paul on Coal
Tuesday, February 23, 2010
BHP Billiton (ASX:BHP) Japan Coal Prices
BHP Billiton (ASX:BHP) (NYSE:BHP) Japan Coal Prices
A proposal from BHP Billiton (ASX:BHP) to Japanese steelmakers to increase the price of coking coal provided by the company by 55 percent was greeted with luke warm response from the Japanese, to say the least.
BHP has held its coking coal prices down over the last couple of years, probably the reason it through out such hig percentage increase in prices to test the Japanese response. It also could be an attempt to secure higher prices than they hoped for by presenting such a large increase in the first place.
The Japanese have reportedly rejected the prices asked for, and BHP will now start to negotiate in earnest concerning the prices. This was probably BHP telling the Japanese they'll have to pay a lot more this year for the coking coal.
BHP Billiton (ASX:BHP) (NYSE:BHP) Japan Coal Prices
A proposal from BHP Billiton (ASX:BHP) to Japanese steelmakers to increase the price of coking coal provided by the company by 55 percent was greeted with luke warm response from the Japanese, to say the least.
BHP has held its coking coal prices down over the last couple of years, probably the reason it through out such hig percentage increase in prices to test the Japanese response. It also could be an attempt to secure higher prices than they hoped for by presenting such a large increase in the first place.
The Japanese have reportedly rejected the prices asked for, and BHP will now start to negotiate in earnest concerning the prices. This was probably BHP telling the Japanese they'll have to pay a lot more this year for the coking coal.
BHP Billiton (ASX:BHP) (NYSE:BHP) Japan Coal Prices
Monday, February 8, 2010
Expecting $6 Billion Profits Rio Tinto (LON:RIO)
Rio Tinto (LON:RIO) Profits
Rio Tinto (LON:RIO) will release its annual report on Thursday, and analysts are expecting the company to report $6 billion in profits for the year.
Much of that is from the strong demand for iron ore and coal which has driven up prices over the last year. This year looks to be another big one for iron ore, as even China's pressure couldn't keep their domestic demand from causing their companies to buy at higher prices then the central government wanted.
Some will probably take the news negative as profits in 2008 were a much heftier $10.3 billion, a 40 percent better performance than 2009, assuming the numbers hold.
There are expectations that Rio may increase their dividend in order to keep their 48 year streak alive for not reducing the dividend over that time, as they didn't offer one in the first half of 2009.
Rio Tinto (LON:RIO) Profits
Rio Tinto (LON:RIO) will release its annual report on Thursday, and analysts are expecting the company to report $6 billion in profits for the year.
Much of that is from the strong demand for iron ore and coal which has driven up prices over the last year. This year looks to be another big one for iron ore, as even China's pressure couldn't keep their domestic demand from causing their companies to buy at higher prices then the central government wanted.
Some will probably take the news negative as profits in 2008 were a much heftier $10.3 billion, a 40 percent better performance than 2009, assuming the numbers hold.
There are expectations that Rio may increase their dividend in order to keep their 48 year streak alive for not reducing the dividend over that time, as they didn't offer one in the first half of 2009.
Rio Tinto (LON:RIO) Profits
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