S&P: "Coal Has Been One Hot Commodity Lately"

Source:

...despite what S&P Primary Credit Analyst Sherwin Brandford and Secondary Credit Analysts Michael Scerbo and Marie Shmaruk called "meaningful price volatility," they advised that "we think over the next two years industry fundamentals will remain positive because coal will continue to be a vital energy source for countries throughout the world."

Standard & Poor's declared that "coal has been one hot commodity lately," but does see risks to the sustainability of currently high prices.

In an analysis published Tuesday, S&P Primary Credit Analyst Sherwin Brandford and Secondary Credit Analysts Michael Scerbo and Marie Shmaruk discussed four specific threats to coal prices: regional dynamics, a stronger U.S. dollar, increased exports from outside the U.S., and supply from China.

Nevertheless, despite what the analysts called "meaningful price volatility," they advised that "we think over the next two years industry fundamentals will remain positive because coal will continue to be a vital energy source for countries throughout the world."

"Currently, about 50% of the electricity generated in the U.S. uses steam coal...

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