With increasing international momentum towards a more decarbonized world, the prospects of coal as a pollutant are not great. Many nations have established goals for eliminating coal. And recently, China’s intervention to temper rising coal prices has caused coal futures to fall sharply. We believe it would be prudent to avoid the weak stocks of CNX Resources, Peabody Energy(BTU), Arch Resources/ARCH and Warrior Met Coal. Let’s talk about coal. It is one of the most harmful substances for energy generation. Michelle Manook is the chief executive of the World Coal Association. She believes that the coal industry has not done enough to show how cleaner technology can lower carbon emissions. This is making it more difficult to incorporate coal into a low-carbon future.

G7 leader pledged in June to phase out coal and transition away. Japan, which is second in overseas coal power financing, has also committed to the initiative. Recently, China, the world’s largest coal producer, intervened to tame surging coal prices as part of an effort to address power shortages. China’s coal production declined by 30% last Friday. The most-traded Zhengzhou Commodity Exchange contract settled at 1,408.4 dollars ($220/ton). That represents a 30 percent decline on Tuesday, and the biggest weekly drop since May.

We believe it would be prudent to steer clear of fundamentally low coal stocks at CNX Resources Corporation, Peabody Energy Corporation, BTU, Arch Resources, Inc., and Warrior Met Coal, Inc.

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