Coal Demand from Asia is back already.... Hmm.....

Massey Energy Adding Miners to Keep Pace With Asian Demand, According to AP

Last update: 7/30/2009 12:54:00 PM

--Associated Press Report Cites Increased Steel Production for Rise in Coking Coal Demand

CHARLESTON, W.Va., July 30, 2009 /PRNewswire-FirstCall via COMTEX/ -- The Associated Press reported today that "Massey Energy (MEE) has begun rehiring miners amid growing demand for coking coal from Asian steelmakers."

According to the report, "Officials with the Richmond, Va.-based coal producer also told analysts they've been seeing promising signs that U.S. demand for coking coal to fire blast furnaces is recovering. Both are positive signs for U.S. coal producers and the ailing economy, which has left towering stockpiles of coal at power plants and in coal-producing states this summer."

Massey's Chief Executive Don Blankenship was reported as saying, "As China and India consume more coal, we believe our opportunity may be greater to sell our coal directly into these markets or to displace Australian and South African coal in the market as that production remains in Asia."

Coking coal imports to China have soared as the country's steel mills have cranked up production this summer, said industry analyst Charles Bradford of Affiliated Research Group.

"They imported 4.6 million metric tons last month," Bradford said. "For the first six months [of 2009] they only imported 12.7 million tons, so you did a third of the six months in one month."

The AP report went on to say that "Massey has seen positive signs from U.S. steel producers. Coking coal accounted for 19 percent of the 9.4 million tons of coal Massey produced from mines in West Virginia, Kentucky and Virginia in the second quarter."

"We have seen at least two significant accounts improve their shipment schedule, at some fairly healthy prices," Mr. Blankenship said. "I don't think we're going to sell any more coal at high prices, but I think people who have commitments to us appear to be more able to fulfill those commitments and, therefore, you could see a better volume and second-half met situation than we forecasted."

SOURCE Massey Energy