Maybe a silver lining.... What value UNV even without NCC short...

Maybe a silver lining....
What value UNV even without NCC short term?


FROM BLOOMBERG
Unloved Coal seen as surging as China cuts Collide with La Nina

• Prices may rise 50% if La Nina rain worse than expected: Citi
• Bank of America also raised forecast of Newcastle coal price

Thermal coal prices in Asia may jump as much as 50 percent if rainfall caused by La Nina is heavier than expected, further tightening the market as China cuts production, according to Citigroup Inc.
Prices at the Australian port of Newcastle, an Asian benchmark, may increase to $90 a metric ton if La Nina rainfall hinders Australian and Indonesian output, analysts led by Ed Morse wrote in a note e-mailed Monday. China’s steep production cuts are simultaneously raising demand for seaborne coal, they wrote. Prices have risen 19 percent so far this year to about $60 a ton, according to globalCOAL, following five years of declines.

“We are now bullish on short-term thermal coal prices,” the Citigroup analysts wrote. “Coal demand could prove to be more robust than commonly thought. China’s coal production cut is also key to a tighter bala Coal, one of the least loved commodities by analysts because of an oversupply and China’s efforts in cutting use of the dirty fuel to fight pollution, is now looking more favorable. Bank of America analysts led by Peter Helles raised price forecasts for Newcastle coal for the second half of this year to $59, from an earlier projection of $46.50, the bank said in a note July 1. Citigroup expects prices to average $61 a ton in the first quarter of 2017.