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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10 quotes from former Syracuse RB Prince-Tyson Gulley on Scott Shafer’s firing

first_img Facebook Twitter Google+ Published on November 23, 2015 at 12:24 pm Contact Matt: [email protected] | @matt_schneidman Syracuse fired head coach Scott Shafer on Monday morning though he will coach his final game on Saturday against Boston College. Former SU running back Prince-Tyson Gulley played for the Orange from 2010-2014 and spoke with The Daily Orange about Shafer.Here are 10 of Gulley’s quotes from that conversation:“We’ve been discussing a lot of things as alumni. I just feel like this is one of the problems with why Syracuse can never get to the point that we can get, is because every 3-4 years we are switching coach.”“Shafer, they just need to give him a chance to build the program. Me knowing him personally, if he would be able to get enough time just to mold these kids and get a full at least five or six years … he has to create the culture that he wants.”“This is what great coaches do, they look at the team that they already have and they build within. They build from what they have. Most coaches nowadays, they come on in and they clean out.”AdvertisementThis is placeholder text“What I will say is if the next coach comes in and tries to build from what he already has, then maybe something happens.”“Honestly, the reason why Shafer should’ve been able to stay is because they should let him build that culture. It’s gonna be slow.”“I understand it’s a results business, but results take time in this game. All the big teams, they’ve had rocky roads but they’ve figured it out. We’ve had too many rocky roads and we still haven’t figured it out. What have we learned?”“Someone has to look in-depth of this program, really in-depth into the program. If there was a coaching change, obviously they already made that choice. We need to look deeper.”“To be truthfully honest with you, I love Coach Shafer, but a big name would work out perfect.”“My last season there, we were terrible on offense. I’ve seen the life in this offense.”“Honestly, we got to trust (Director of Athletics Mark Coyle). We’ve got to trust him, that he knows exactly what he’s doing, because it’s already done.” Commentscenter_img Related Stories Syracuse head coach Scott Shafer fired, will coach final game vs. Boston CollegePoll: Should Syracuse have fired Scott Shafer?Potential replacements for Scott Shafer as Syracuse’s head coachStorify: Social media reactions to Syracuse football head coach Scott Shafer’s firingBlum: Scott Shafer needed to be firedlast_img read more

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