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Written by: LT Staff 4/17/2008 |
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| Coal volumes continue to be a high point in rail volume trends, says Morgan Stanley Research, offsetting some weakness in industrial commodities. Export coal volumes on eastern railroads could be up 20% to 30% in 2008. The higher margins on this business could benefit further from price increases. “The contribution to margins is far greater from a price increase than volume,” says Morgan Stanley. “With metallurgical coal running at [three times] last year's prices,we expect to see a material increase in rail pricing for export coal in [thesecond quarter of 2008].” Historically,export coal makes up only 5% to 10% of coal volumes, says the analyst firm, but the benefits to the railroads of strong demand and pricing on export coal can help balance other commodity sectors. |
Re: Strong Export Coal Means Stronger Prices
by Keith Luo on 13 Apr 2009 20:25
Quoting from [xuqingali]:
s.prop6 = 'Article';
s.prop7 = 'Strong Export Coal Means Stronger Prices';
Written by: LT Staff
s.prop9 = 'Written by: LT Staff';
4/17/2008Coal volumes continue to be a high point in rail volume trends, says Morgan Stanley Research, offsetting some weakness in industrial commodities. Export coal volumes on eastern railroads could be up 20% to 30% in 2008. The higher margins on this business could benefit further from price increases. “The contribution to margins is far greater from a price increase than volume,” says Morgan Stanley. “With metallurgical coal running at [three times] last year's prices,we expect to see a material increase in rail pricing for export coal in [thesecond quarter of 2008].”
Historically,export coal makes up only 5% to 10% of coal volumes, says the analyst firm, but the benefits to the railroads of strong demand and pricing on export coal can help balance other commodity sectors.
Source from http://www.logisticstoday.com/
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