April 24, 2008 at 6:00 am by Tom Lydon
Coal prices are getting fired up, as demand for steel products and supply disruptions in Australia are aiding the rise of the fossil fuel’s exchange traded fund (ETF). It looks like the commodity is rising above its bad reputation.
Arch Coal (ACI) released strong first quarter results on Monday, with a 22% increase in revenue, reports Christopher Barker for the Motley Fool.
Market Vectors Coal (KOL) holds 5.3% of ACI, and the fund is up 13.9% since its Jan. 15th launch. Peabody Energy (BTU), which is 7.2% of KOL, released earnings yesterday. First quarter revenues rose 15%.
Going forward, the sentiment for coal appears bullish. Arch has locked in sales contracts well into next year, and many of those are priced at least 40% higher than those in the first quarter of this year.
