RE: Peabody Conference CallThis is part of Peabody Conference Call
Two billion tons of additional thermal coal supply by 2020? That equates to twice the current coal consumption of the U.S. As dominant thermal coal exporting nations like Indonesia and South Africarequire increasing amounts of coal to be consumed domestically, where will the world find an additional two billion new tons?
The consumption of an additional 70mm-80mm tons of met coal this year is a very significant amount. The entire global seaborne met market is just 250mm tons. China produces and consumes domestically about 550mm tons and will probably import 40mm tons of met coal over this year. As Japan bounces back, India grows to become the biggest importer of met coal and Brazil beginsto ramp up for both an Olympics and a World Cup, 2012’s incremental met coal consumption could top 100mm tons. Boyce continued,
As a lay person.
There has been a lot of talk regarding the quality of Cline’s coal because of the ash content and this bring down the higher price of MET coal.
If there is this shortage of MET coal I cannot see the price of Cline’s going down.
Nor can I see the SP staying down around $5.00.
Please answer someone.
tinyhopes