The US coal industry has weakened after taking the brunt of lower electricity demand and is highly vulnerable to resurgent coronavirus infections that could further reduce demand for coal in a downside scenario, says Moody’s Investors Service.
The organisation expects weak second quarter earnings for coal producers.
"In 2020, demand for electricity has fallen sharply since March, largely because of the economic impact of the pandemic, and we expect that consumption of coal by the electric power sector will fall by more than 30% in 2020,” says Moody’ s senior VP credit officer, Benjamin Nelson.