The rise in prices has caused an increase of coal demand. In central Appalachia, spot coal prices are at their highest point in over 12 years. We believe that buying the decline in fundamentally solid coal stocks SunCoke, (SXC), and Ramaco(METC) might be profitable. Continue reading. The United States is seeing a revival in coal use after years of decline due to a pandemic. U.S. power plant are expected to burn 23% more coal in 2014, which marks the first significant increase in electricity generation since 2013. This year, coal is projected to provide 24% of the nation’s electricity. The spot coal price in Central Appalachia rose by more than $10 last Week to $89.75. This is the highest growth in 12 years.

The U.S. Energy Information Administration predicts that U.S. coal-fired power will be 22% higher in 2021 than it was in 2020. This is mainly due to rising natural gas prices. The problem is that coal supply has been tightened because the production of coal was cut off for several months and the coal mines were operating at a reduced level during the worst part of the pandemic. Because the output will not keep pace with growing demand, it is likely that prices will rise.

This backdrop suggests that we believe fundamentally sound co-stocks SunCoke Energy, Inc., SXC and Ramaco Resources, Inc., NASDAQ:, could make good investments on the recent price decline.

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