Coal stocks fall after Glasgow climate agreement reached Reuters-zimo news


© Reuters. File photo: On October 2, 2010, thick smoke came from the chimney of a coking plant in Hefei, Anhui Province. REUTERS / Stringer / File Photo

Author: Tom Westbrook

SYDNEY (Reuters)-An international agreement to reduce coal use pushed down Asian coal inventories on Monday, but tight supply has provided a solid foundation for many stocks in industries that have recorded sharp gains this year.

The UN climate negotiations in Glasgow on Saturday ended with an agreement on the use of fossil fuels -2021-11-13. The wording has been softened calling for “gradual reduction” instead of waiting in India After the state lobbyed, coal was “phased out”.

“The reality is that coal will be used within the next ten years. Mathan Somasundaram, CEO of Sydney research firm Deep Data Analytics, said he will always be a cash creator.

Large mining companies China Shenhua Energy and Yanzhou Coal (OTC) fell 1% and 4% respectively in Hong Kong, and the market was basically stable.

In Indonesia, the world’s largest coal exporter, the decline was even more pronounced. Major mining company Bumi Resources fell 4%, and rival Indika Energy fell 6%. Adaro Energy fell 4%.

Australian power coal mining company Whitehaven Coal’s share price fell 2%, and its competitor New Hope (OTC:) shares fell 0.5% in a slightly stronger market.Metallurgical coal miner South 32 (OTC:) and Coronado Global Resources fell about 2% and 3% respectively.

These measures continue the recent corrections, which reduced the huge gains of Whitehaven, South32 and New Hope since the beginning of the year, which have now risen by more than 40% under the influence of the global energy crisis.

Official data shows that, as the world’s largest coal producer and consumer, China’s coal production last month hit its highest level in more than six years, which helped depress short-term spot prices on Monday.

The Glasgow Agreement triggered commitments for future reductions, addressed the rules of the carbon market, and targeted fossil fuel subsidies, which could accelerate the transition to other energy sources.

Elsewhere in Asia, Seoul-listed miners and suppliers KEPCO (KS:), LX International, and Doosan Heavy Industries fell 1% to 2% in a larger market that was up 1%. ()

According to George Boubouras, head of research at K2 Asset Management in Melbourne, underinvestment in coal projects may keep spot prices at historical highs, but the possible demise of fuel may limit stock returns.

“High thermal coal prices…may not necessarily translate into higher stock prices to the same extent,” he said. Asia’s oil weakened slightly, natural gas slightly strengthened, and stocks in the industry were generally stable. [O/R]

Some investors believe that uranium will fill some of the gap left by energy companies’ exit from coal, helping uranium futures soar alongside other commodities in recent weeks.

Large miners rebounded. Last week, Canada’s Cameco (New York Stock Exchange ? New York Stock Exchange ?) brought Canada’s Cameco (New York Stock Exchange ? New York Stock Exchange ?) to a 10-year high, and Kazakhstan’s Kazatomprom hit a record high. (This story fixes the KEPCO Reuters tool code as ( KS 🙂 de))

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