AMR - Indonesia to lift coal export ban with conditions - coal equities on fire

Indonesia is set to lift its coal export ban today, provided that local producers meet domestic market obligations before exporting. Nikkei Asia reports that minors will need to report fulfillment data monthly and face harsh penalties for noncompliance. The news was enough to send thermal coal prices in Asia lower by ~5%, though the Asian benchmark still sits near all time highs.    In seemingly unrelated news, coal stocks in the US are ripping today. Thermal coal names like Peabody (NYSE:BTU) and Consol (NYSE:CEIX) are up 10%+. While metallurgic coal names like Alpha (NYSE:AMR), Warrior (NYSE:HCC) and Arch (NYSE:ARCH) are up anywhere from 8-14%. Although the thermal share price performance could be explained in part by firming natural gas fundamentals, the met coal strength today is difficult to reconcile, as steel prices fall. Perhaps the market is simply coming around to spot-market valuations, and bidding shares higher into earnings.

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Indonesia to lift coal export ban, with conditions - coal equities on fire