Land area larger then Texas and California combined, are soaked, down-under, so to speak, as a result of Australia’s dreadful tropic rainfall floods which began shortly before Christmas.
Often known as the hot spot, Australia’s spring and summer wet season lasts about six months or between December and March on this side of the globe.
Today it is seriously affecting kangaroo country’s national Coal Market. Coal, both for home heating and electricity, and steel manufacturing, is under water so to speak.
Whether this means lack of ‘Metallurgical coal’ or ‘meth coal’ is of little consequence. Heating plants that burn coal for energy to homes will be co-opted if possible to meet steel demands around the planet.
If Australia’s worst flooding in 50 years wasn’t enough problem for Queensland, closing Aussie’s coal mining is bound to increase financial pressure on the land of Kola bears. The world already consumes 5% of its meth coal for energy alone. High priced ‘metallurgical’ coal required by manufactured was already becoming more costly before it began to rain.
Either way, for stock market traders, it’s a safe and probably valuable bet that coal stocks are going to be a profitable purchase in months to come.