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:

Surprise Rate Cut

Reuters Showcase

Documents' Leak

Documents' Leak

India widens oil leaks probe to defence ministry  Full Article 

Reuters Exclusive

Reuters Exclusive

Payment delays dent India's flagship health, AIDS programmes  Full Article 

Jim O’Neill Interview

Jim O’Neill Interview

'India can become world’s fifth-largest economy by decade’s end'  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM  Full Article 

Ola's Expansion Drive

Ola's Expansion Drive

Taxi group Ola steps up expansion drive  Full Article 

Sahara Saga

Sahara Saga

Sahara's Grosvenor House hotel in London put up for sale   Full Article 

Suzlon Energy

Suzlon Energy

Suzlon expects to turn profitable in fiscal 2016: chairman   Full Article 

Beef Trade

Beef Trade

Maharashtra clamps down on beef trade through new act  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

Reuters India Mobile

Reuters India Mobile

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