Skip to content
Subscriber Only

Coal Prices May Do Something They Haven't Done in 2 Years: Rise

  • Benchmark may rise a few dollars in second quarter: BB&T
  • Analyst says China may cut supply of coal used to make steel
Updated on

Potential supply cuts have the price of metallurgical coal -- the kind used to make steel -- poised to do something it hasn’t done since October 2013: rise.

The benchmark contract for the coal may gain by a few dollars in the second quarter amid speculation that China is curtailing supply amid high costs, Mark Levin, a coal analyst at BB&T Capital Markets in Richmond, Virginia, said in a note to clients on Friday. An increase would pause a rout that began in 2011 when prices peaked at $330 a metric ton.