Overnight we saw massive panic in the coal futures market with an overnight +46% pop, hard to imagine under normal circumstances! Russia produces around 15% of both met coal (steel making) and thermal coal (power generation) however it’s not just that region where exports have / will fall. Indonesian exports of coal are down 20% this year while Australian exports are also lower making the market very tight and more susceptible to shocks. That said, this is not a normal market and these prices will not stay where they are, they are simply uneconomic for end users.
While our positions in both Whitehaven Coal (WHC) in our Flagship Growth Portfolio & Coronado Coal (CRN) in our Emerging Companies Portfolio will benefit from this spike, subscribers should be aware that MM will be a seller into panic levels, above $4 on WHC & above $2 on CRN.
MM is looking to take profit on WHC if it rallies above $4
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