Markets
The unprecedented reduction in U.S. electricity consumption in 2009 led to a decline in coal demand and record inventories. However, as the U.S. and global economies recover, we believe that steam coal consumption and the demand for metallurgical coal will increase and lead to higher prices. This is supported by the following trends:
- Favorable outlook for the U.S. steam coal market
- Favorable outlook for the metallurgical coal market
- Growing export market
- High prices for alternative energy sources
- Development of new coal-related technologies could lead to increased demand for coal