If things weren't bad enough for metallurgical coal producers lately, it looks like several Wall Street analysts want to add to the frustration. Both Goldman Sachs and UBS have recently downgraded Walter Energy (WLTGQ) and Alpha Natural Resources (NYSE: ANR), respectively. With so many analysts predicting the price for metallurgical coal remaining in the range of $120-$130 per ton for this year and well into next year, it will continually put a strain on these companies, which are highly dependent on coking coal exports.
There is pretty much one element that will make or break the metallurgical coal market over the next couple of years, and that is China. Find out more about the particular issues that have caused UBS and Goldman to be so bearish on these two stocks and what investors should make of the future of these two companies.
