Analysts say lower export prices a threat to Illinois Basin coal producers

first_imgAnalysts say lower export prices a threat to Illinois Basin coal producers FacebookTwitterLinkedInEmailPrint分享S&P Global Market Intelligence ($):A combination of increased production, declining domestic demand and lower seaborne pricing is creating conditions in the Illinois Basin that might force mine closures or consolidation. Two analysts said the basin is already oversupplied, while others are hesitant to use that label yet.Several coal miners in the region announced increased output guidance or additional production during fourth-quarter 2018 earnings calls, which spurred some concern among observers who worry there will be more tonnage and fewer places for producers to sell it.Peabody President and CEO Glenn Kellow said on a Feb. 6 earnings call that the company will scale back some operations because pricing in the Illinois Basin is “not at a level that provides a clear return of that cost of capital.”John Hanou, president of Hanou Energy Consulting, agreed that the basin is oversupplied and there could be some consolidation as a result. “Coal miners are their own worst enemy,” Hanou said. “If they can expand production at a relatively low cost, that’s what they do.”Seaport Global Securities LLC analysts Mark Levin and Nathan Martin wrote in a March 20 report that while they think it is early to say the basin could be oversupplied in 2020, “we believe investors should at least be thinking about the possibility.” If lower export prices persist, that could make it “very challenging for Illinois Basin exports to maintain their lofty levels.”While the basin performed well in 2018 and looks poised to do pretty well this year, its success will depend largely on exports, Hanou said. Illinois Basin producers can compete when API2 prices are around $70 to $75, but once the price drops below $70, it becomes more difficult, even for the lower-cost miners. The price has recently fallen below $70. “Historically, if you look at the Illinois Basin and the exports, they’re highly cyclical,” Hanou said. “If the exports really drop this year and more likely next year, that’s going to create more supply into the domestic market.”More ($): As export prices fall, observers worry about coal oversupply in Illinois Basinlast_img read more

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Star Lager Rewards Fans as Eagles Hit Last Eight

first_imgShare this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegram At the Star Fan Park situated inside the National Stadium in Lagos, many fans still remember vividly how the Indomitable Lions denied Eagles the chance of winning a second AFCON title on home soil in the year 2000.However, those painful memories were momentarily erased as Nigeria ejected Cup holders Cameroon after winning Saturday’s five-goal thriller.As expected, the Star Fan Park was full to the brim with loyal consumers and passionate football fans who at the end of 90 minutes were all smiles as the Super Eagles got the job done.Indeed, the atmosphere at the National Stadium in Lagos and other fan parks across the country was as if not more electrifying as that at the Alexandria Stadium as fans enjoyed this Round of 16 match on a giant TV screen laced with good music, fun games, trivia and much more all provided by Star Lager.At the end of what was a thrilling encounter, Star Lager the official beer and a sponsor of the Super Eagles rewarded its loyal customers with mouthwatering prizes which included LED Smart TVs, DSTV Decoders, rugs and many more.Prince Obatusin who was the lucky winner of a DSTV Decoder with a full month subscription described Star Larger as a blessing to Nigeria.“I am not surprised that Star is doing all this, they are a blessing to Nigeria and I wish the Super Eagles will go all the way to win in Egypt,” he saidAnother winner on the night Osas Raymond said he was already excited to see the Super Eagles beat the Lions and now overjoyed with Star Lager putting the icing on his cake with another wonderful prize for him.The Super Eagles will play South Africa on Wednesday, July 10 and the fans have urged the team to keep shining until they win the fourth AFCON title. Nigerian Breweries through its premium brand, Star Lager beer is keeping true to its promise to give fans a memorable Africa Cup of Nations experience even if they are far away from Egypt where the biennial football tournament is taking place.At the weekend across the Star Fan Parks in the country, it was celebration galore as the Super Eagles produced another shining performance; beating fierce rivals Cameroon 3-2 in their Round of 16 tie to set up another tasty quarter-final clash with South Africa’s Bafana Bafana.last_img read more

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