Peabody Energy Corporation (BTU), Alpha Natural Resources, Inc. (ANR), Arch Coal Inc (ACI): Coal Demand Is in Vogue Around the Globe

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Germany
One of the biggest surprises is that Germany’s coal generation is up 9% this year and coal accounted for 52% of that country’s power generation. This drove an 18% surge in German coal imports, which is positive news for a company like CONSOL Energy Inc. (NYSE:CNX). While the overall European market remains oversupplied at the moment, depressing the European benchmark price, this is a long-term positive development. In fact, CONSOL Energy Inc. (NYSE:CNX)’s customers are not only demanding fully contracted volumes in Europe, but many are expanding relationships with CONSOL.

Final Foolish thoughts
The coal export market is the key driver of coal these days. Coal producers like Peabody Energy Corporation (NYSE:BTU) and Arch Coal Inc (NYSE:ACI) have turned to Kinder Morgan Energy Partners LP (NYSE:KMP) to increase export capacity so these producers can take advantage of stronger demand overseas. Unfortunately, U.S. producers aren’t alone in supplying the global coal markets — there are also producers in Australia and Indonesia keeping the world well supplied with coal. That means it will still be pretty tough for U.S.-based coal producers to thrive, but not as tough as it would be if the export market didn’t exist.

There are many different ways to play the energy sector, and coal might not be the best way, despite the demand for exports. Instead, you might want to dig a little deeper into a stock that The Motley Fool’s analysts have uncovered which is an under-the-radar company that’s dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations for oil and gas companies, and is poised to profit in a big way.

The article Coal Demand Is in Vogue Around the Globe originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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