Sell Coal Stocks! The Dollar is Up 0.000002%!
Danger Will Robinson! Sell coal stocks - CNBC says the run is over! CBSMarketwatch opines after a 2 day correction "Have Commodities Peaked?". 2 days - that's massive - the end of days are upon us. Crude might "fall" to $115 and the malls will be teaming with over eager consumers basking in $3.50 gasoline. As goes crude, so goes coal - I mean it's the same color! Bernanke will be attacking inflation with the use of 3 and 4 syllable words (not raising rates but using even STRONGER language) as the 1 and 2 syllable words were not effective at "breaking the back" of inflation so far this summer. Get out! Hurry!
Bloomberg July 8 - China Shuts More Coal Power Plants; Warns on Shortage
- China, the world's second-biggest energy consumer, shut 2.5 percent of its coal-fired power plants, prompting local governments to limit electricity consumption and issue warnings on possible blackouts. Insufficient coal supplies forced the closure of 58 power- generating units in central and northern China as of July 6, or 14,020 megawatts of capacity, data from the State Grid Corp. of China showed yesterday.
- Coal inventories at State Grid, the country's biggest power distributor, were enough for about 11 days of consumption as of July 6, compared with 12 days in April and 15 days in March.
- ``The power problem is beginning to look deep-seated and structural and unlikely to be resolved rapidly,'' said John Kemp, a London-based analyst with Sempra Metals Ltd. (Yes John, welcome to the reality of a World of Shortages)
- The latest power-plant closures come even as the government last month imposed ``caps'' on thermal-coal prices through the end of the year to control raw-material costs and ensure electricity production. ``Coal suppliers may sell the fuel to consumers willing to buy at much higher prices."
- Aggravating the shortfall, China has been shutting thousands of small and unsafe mines in Shanxi and other areas. China generates almost 80 percent of its power from coal, with the northern province its biggest producing region.
- The central province of Henan restricted electricity use in eight cities as power plants shut because of fuel shortages, Xinhua News Agency reported on June 27. Henan will face a power deficit when consumption peaks in summer, it said.
- State Grid Corp., which buys electricity from 541 coal- fired power plants and distributes it to more than 1 billion people across the country, said yesterday the coal stockpiles of 64 power plants have fallen below the ``caution line.'' That means that the inventories of those generators can't meet more than three days of consumption
- Overseas suppliers may be unwilling to sell the fuel to China because of the government caps on domestic prices announced on June 19, Fang said on July 1. That would aggravate the country's coal shortages. (hmm, here is a solution - pay up)
- Global coal prices will ``move modestly higher over the next six to 12 months,'' Daniel Brebner, UBS AG's executive director of commodity research in London, spoke in a phone interview on July 3.
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