The dramatic turnaround of the U.S. coal industry that’s sent share prices soaring and provided a lifeline for miners is running out of steam.
Milder-than-expected weather that weakened demand has allowed stockpiles to swell, and coal prices are falling. The power-plant fuel also is facing competition from natural gas, which hasn’t been this cheap since late 2020. There are concerns that coal-fired U.S. utilities will seek to delay contracted deliveries this year.
“It’s going to be an awful spring, if you’re looking at it from a coal perspective,” said Andrew Blumenfeld, director of data analytics at McCloskey by Opis. “There’s just no demand.”
