Dallas, Texas 01/06/2014 (FINANCIALSTRENDS) – Arch Coal Inc (NYSE:ACI) the coal-spewing mine has announced that operations at Leer Mine, in northern parts of West Virginia, are nearly up and running. The cross-spectrum of activity the company engages in- thermal and met industry coal has meant that the company has several avenues to grow, when the going gets tough. Investors are bullish on ACI, based on reports of revival of these stocks.
The coal companies across the U.S. are already in the rough patch as regulation on environment impact of pollutants, lead to procedural largesse. Additionally, the natural gas prices too have slid, with the coal market prices at low points and the markets seeing abundant goods supply.
Arch Coal Inc (NYSE:ACI) continues to play in the oversupplied met coal market and price slots for 2014, do not appear to see much shift; will lose on the margins for the first quarter. Competing coal miners – Tech Resources, Alpha Natural Resources- to are high in volume production of coal for 2014 and will keep the market oversupplied with coal.
Arch Coal Inc (NYSE:ACI) does see some growth in the thermal coal division. As the natural gas prices drive prices up for electricity production, trends towards coal-based generation of electricity are beginning to catch-up all over again. One of the large volume stockists of coal in the U.S. are the innumerable electric power producers. As their monthly coal stocks are expected to fall to 13.9% according to the Energy Information Administration, it would translate to 145 million tons in the month of January this year. Electricity producers, with the increase in natural gas prices, backed by coal-demand-based prices, will look towards thermal resources to lay thin the losses of higher resources.
Arch Coal Inc (NYSE:ACI) has remained financial on-course, despite the tough costs and operations scenario it is currently running.