11.10.2011 - Not all commodities are as cyclical as copper or lumber, thermal coal demand is sticky
Thermal (or steam) coal, natural gas and nuclear energy are the primary sources of fuel used to generate electricity in the U.S. According to the EIA, 45% of the electricity generated in 2010 came from coal-fired power plants. A common definition of a commodity is that it's easily substitutable. Over the past few years, natural gas has made serious inroads at the expense of coal in the country's generation mix. However, in order for a meaningful amount of switching from to continue, our country needs more natural gas and nuclear power plants to be built..............................................Full Article: Source
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