Update on Hybrid Met/Thermal Coal Stocks

Regaining Equilibrium After a Rough Patch

In yesterday’s installment, we ran through the met-focused coal stocks, so today we’re going to focus on the hybrid producers – namely BTU 0.00%↑ CNR 0.00%↑ and $WHC.AX/$WHITF.

Given recent performances for thermal coal – the Newcastle 6000 kcal/kg spec has fallen from $150 resistance in September all the way down to long term support around $115 – most of these stocks have had a rough go of it.

Add in uncertainties caused by recent events, namely BTU’s acquisition of Anglo American’s metallurgical coal assets, and the fire at CNR’s Leer South mine in West Virginia, and the near term outlook gets even murkier.

However, from a coal price perspective at least, the worst is likely behind us. As such, it appears most of these share prices are trying to find some equilibrium ahead of shoulder season…let’s take a look.