Dow Jones cited Mr Don Blankenship Chairman & CEO of Massey Energy Co demand for US thermal coal used to generate electricity will remain soft for the next few quarters domestically but export demand could pick up, helping pricing.
He said that "We know there will be Central Appalachia properties that will be struggling."
As for thermal coal, Mr Blankenship said rising demand in Asia could eventually spill over into the US market but the timing is unclear. Traditional European coal suppliers such as South Africa could increase shipments into Asia requiring Europe to turn to the US for supply.
He said that "That would drive thermal coal prices very quickly."
In response to a question on the conference call, Mr Blankenship said Massey would consider eventually expanding into the port business because of likely export demand, but sees enough port capacity currently.
Massey continues to forecast shipping 37 million to 41 million tonnes this year slightly higher than 36.7 million tonnes sold by the Richmond, Va., producer last year. However, Massey is expecting a larger share of its production to be metallurgical coal used for steel production raising its outlook for this coal by 2 million tonnes to 10 million to 12 million tonnes.
(Sourced from Dow Jones Newswires)
