HNRG - Coal names crushed as China seeks ways to intervene against rising prices

Peabody Energy (BTU -19.0%) surrenders nearly all of yesterday's 23% rally after China's state planner said it is reviewing ways to intervene including setting price limits to stem surging coal prices. The most traded thermal coal contract on the Zhengzhou Commodity Exchange fell 8% overnight to 1,755.40 yuan/ton ($275) after touching an all-time peak of 1,982 yuan/ton. Chinese law allows the government to limit profit rates and set price limits, the National Development and Reform Commission says, saying it will crack down on any irregularities. Peabody released preliminary Q3 results yesterday, with sales seen exceeding $900M for its best showing in seven quarters, and adjusted EBITDA of $280M-$290M tripling year-ago levels. Other coal mining shares also turn sharply lower after rising yesterday: HNRG -14.1%, METC -12.6%, CEIX -12.5%, ARLP -4.7%, ARCH -4.3%, HCC -2%. Sparked in part by coal mining curbs set by China to combat pollution, shares of coal

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Coal names crushed as China seeks ways to intervene against rising prices