The profitability of North American coal miners is set to worsen in the next 12 to 18 months on the back of an expected decrease in export prices for thermal coal, particularly in Europe, combined with mostly open contract positions for some producers in 2020, says Moody’s Investor Service.
Stronger conditions in the export market over the past couple of years have helped to prop up prices and allow many North American producers to stay in business and generate meaningful cash flow.