Coal prices have been rising worldwide due to a shortage and this winter could prove the most costly in 13 years. This scenario makes it a good idea to invest in fundamentally sound small-cap stocks Warrior Met Coal, SunCoke Energy, and Ramaco Resources. The benchmark market for Asia’s vast Asian markets, Newcastle Port, Australia, is experiencing a more than twofold increase in coal prices this year, to $180 per metric ton. Its rise has been driven by rising demand from utilities, and falling stockpiles. Goldman Sachs (NYSE 🙂 expects coal prices to reach $190 per metric ton between October and December. In Europe, the coal price has risen to $169 from $65 mid-March. In addition, with China’s bulk of electricity still being generated by coal, growing demand from the power sector should further drive the prices higher.

Energy Information Administration states that in America, coal will make up 20% of the electricity generated by the grid. This is due to higher natural gas prices.

Fundamentally sound small-cap stocks of coal Warrior Met Coal, Inc., SunCoke Energy, Inc., and Ramaco Resources, Inc., could reap the benefits from rising prices for coal and provide solid returns over the short term.

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