Seaport analyst: Consolidation is next logical step for coal industry

摘要

The coal industry is “too fragmented” to command pricing power andrnis in need of consolidation, according to a new note from Seaport GlobalrnSecurities LLC analysts.rnAnalyst Mark Levin wrote in a June 20 note that the industry has “toornmany suppliers chasing too few tons.” The report cites a recent claim thatrnDuke Energy Corp. received about 50 bids from suppliers across variousrnregions for a collective 8 million tons of coal to be delivered in the secondrnhalf of 2017. Even if that is exaggerated by 20, it is clear that utilities have allrnthe bargaining leverage, the note said.