Spot prices in Central Appalachia remained relatively unchanged last week, but market participants said their direction over the next several months could hinge largely on what happens with a number of bankrupt coal producers. Among the bankruptcies being closely watched by the industry are those of Horizon Natural Resources and Lodestar Energy, both of which could result in an unexpected supply crunch should either of those producers be forced to shut more mines or forfeit any existing supply contracts. Utility customers such as Carolina Power &Light have already expressed concerns about Horizon's situation. CP&L recently told Horizon's bankruptcy court that it is worried the producer may default on several major coal contracts, thus forcing CP&L to enter the spot market for several million tons of replacement coal.
展开▼
