UPDATE 1-U.S. miner Consol sees steelmaking coal prices up in 2013

Thu Sep 6, 2012 9:12pm IST

Related Topics

Stocks

   

* Sees metallurgical coal price at $215-$230/tonne in 2013

* Consol CEO sees shakeout of uncompetitive companies

* Stock rises slightly

Sept 6 (Reuters) - Demand for steelmaking coal should increase next year and send prices higher than their current low levels, the head of U.S. coal miner Consol Energy said on Thursday.

Chairman and Chief Executive Officer Brett Harvey said current low metallurgical coal prices, driven down by weak demand in China and elsewhere, could result in some uncompetitive companies in the high-cost Appalachian coalfields falling by the wayside.

"Demand for met (metallurgical coal) has dropped off, that's why Buchanan is shut down," Harvey said, referring to Consol's mine in Virginia that the company has temporarily idled.

"(But) we see a shift, the marginal players must be shaken out," he told analysts at a Barclays energy conference in New York. At current prices, "mines in the U.S. are absolutely under water.

"I think in 2013 there will be a shakeout and we expect prices for high-quality met coal to be back up at $215 to $230 (per tonne) compared to $168 now," Harvey said.

Consol stock rose 14 cents to $29.07 in morning trading on the New York Stock Exchange.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage