Coal Prices: A Buying Opportunity Or A Bearish Signal?
By Shaun Connell:China Daily recently reported that coal demand would likely fall in the second quarter of 2012, because of the now sluggish and slowing Chinese economy. The newspaper reported:
Supply and demand will continue to be roughly balanced in the country's coal market during the second quarter, Wang Xianzheng, chairman of the China Coal Industry Association, said at a meeting...
China's coal output reached 838 million tons during the first quarter, up 5.8% year-on-year, official data showed.
Buying Opportunity or Bearish Trend?
Could this be a buying opportunity for those who believe in a long-term bull market for coal? It's possible, but coal isn't necessarily as simple as that.Market Vectors-Coal ETF (KOL) has dropped sharply over the last year, even with the overall increased demand in coal from China, along with plenty of other coal stocks and mining companies.PowerShares Global Coal Portfolio (PKOL) hasn't fared much better over theComplete Story »