China syndrome

摘要

Coal markets in the US have been under pressure as generator inventories return to more-normal levels and some of the kinks in the transportation system unwind. But it is too early to say whether this is a cyclical downturn - the bust to follow the boom of 2004-2005 - or if it is just a blip inside an otherwise still-intact commodities super-cycle. Coal markets have tumbled 20, 30 up to 60 pct from their early-year highs and are now biting into producers' financial results and mining equities are well off their highs. Other components of the energy complex have weakened as well, with prompt natural gas under pressure and even crude futures and gasoline prices slipping as the US summer driving season closes.