Coal Glut Rocks U.S Mining CompaniesNOVEMBER 30, 2009
Output Cuts Likely as Reduced Utility, Factory Demand Weighs on Prices.
There's plenty of coal for stockings this year. Despite deep cuts to production, U.S. stockpiles are climbing as supplies outpace demand from utilities and factories.
The glut means miners will have to slash output, compounding the industry downdraft and pointing toward depressed prices and possibly layoffs as miners continue to grapple with uncertainty over climate legislation. Overseas markets can offer a buffer for some miners, however.
Meanwhile, less-expensive coal helps hold down inflationary pressure for customers, which include utilities and steelmakers, and gives the economy the benefit of cheaper power.
Despite a recent slight pickup in industrial activity across the ...
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