Coal Industry
Zacks Market Commentaries (December 23rd, 2008) Writes:
For the next 6 months, stocks in the coal industry will most likely meander around current levels until investors get a better sense of the health of the global economy. The status of the housing, credit and job markets will directly and indirectly dictate the medium-term outlook for coal miners and the commodity. The problems associated with the deterioration of the U.S. economy have trickled through the rest of the world, and what have been particularly worrisome are the effects on China and India. In recent years, these two countries have been experiencing rapid growth and their consumption of coal has followed suit, giving support to global prices. However, as exports make up roughly 40% of China's GDP, the global slowdown has decreased China's demand for electricity, iron ore and coking coal. This has put downward pressure on coal prices and producers alike. While we have
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