We think that coal prices are rising due to increased demand for reopening of economic activities and higher global power consumption. Alliance Resource Arch Resources (ARCH), and (NASDAQ:) are both worth considering. Which stock is better to buy right now? Find out more. Alliance Resource Partners L.P. (ARLP), located in Tulsa in Okla. is an American natural resource company. They produce and market coal for utilities as well as industrial consumers in the United States. It operates in three areas: Appalachia, Illinois Basin and Minerals. Arch Resources, Inc., (ARCH), a St. Louis, Miss., company, makes and sells thermal- and metallurgical coke from underground and surface mines. It sells its products to steel, utility and industrial producers.

Due to lower global energy demand, and low commodity prices, last year’s worst-hit industry was the coal one. The rising demand for coal, coupled with high prices and increased power consumption, has led to a rise in coal prices. This is despite the continued decline in utility stockspiles as we approach winter heating season. Coal prices are rising due to supply chain and transportation problems. Domestic utilities have relied on coal-fired electricity generation in order to keep up with rising demand. The continued post-COVID recovery as well as reopening the industrial sector will drive growth in the coal industry. ARLP as well as ARCH both should be benefited.

ARLP has seen a 9.8% price increase over the last three months while ARCH returned 1.4%. Also, ARLP’s 80.7% gains over the past nine months are significantly higher than ARCH’s 67.3% returns. And ARLP is the clear winner with 135.9% gains versus ARCH’s 90.1% returns in terms of year-to-date performance.

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