NEW YORK, NY -- (Marketwire) -- 01/10/12 -- Coal demand has remained strong in recent quarters as massive capacity addition plans in both China and India drive the industry. The latest findings from the International Energy Agency find that coal demand in China alone will rise by 606 million tons of coal equivalent (mtce) to 3,123 mtce by 2016. Five Star Equities examines investing opportunities in the coal industry and provides equity research on Patriot Coal Corporation (NYSE: PCX) and Alpha Natural Resources, Inc. (NYSE: ANR). Access to the full company reports can be found at:
According to the latest research from PINC Research, coal demand is expected to remain strong going forward, while prices will be volatile in the short term, as supply responses are not in phase with demand signals. Fuel, which accounts for 33% of the overall cost of production, witnessed a significant increase in price last year -- raising the breakeven price for producers. According to PINC's research, if prices sustain above US$125-130/ ton there could be significant supplies from USA and Canada.
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Research from the International Energy Agency (IEA) finds that the development of mines and infrastructure in China will shape the global coal market going forward. China is the largest coal producer followed by USA and India. China produced 3.2bn tons in 2010 compared to 570mn tons of India.
The global coal market's dependence on China will remain high, with China alone accounting for 60 percent of global demand growth, the IEA said.
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