Update on Met Coal Markets: A Buying Opportunity

Balancing Risk and Reward: A Long-Term Perspective on Coal

The coal market has been highly volatile. After I published my thesis, coal stocks surged when China introduced its economic stimulus program, though I warned that market expectations were overly optimistic and suggested trimming some positions. The program ultimately proved weaker than anticipated, causing a market correction.

When President Trump won the election, coal stocks rallied again, but they later experienced a large sell-off as metallurgical and thermal coal prices stagnated and fell below the 200-dollar mark for premium low-vol Australian metallurgical coal. This decline can be attributed to a slower-than-expected economic revival in China, along with softer demand growth.

Looking ahead, coal price movements will depend on global economic conditions, policy shifts, and underlying demand drivers …