Coal industry facing challenges with declining demand, but SunCoke Energy and Ramaco Resources could benefit
From Zacks Investment Research: 2025-04-24 15:08:00
The Zacks Coal industry is facing challenges as the use of coal in thermal power plants declines in the U.S., impacting demand. Coal production volumes are expected to drop in 2025 and 2026 due to the retirement of coal units and the shift to renewable sources for electricity generation. Despite this, SunCoke Energy and Ramaco Resources, Inc. are expected to benefit from their high-quality met coal production volumes.
The coal industry is experiencing softness in exports, with projected drops in export volumes due to tariffs and lower demand for steel. Emission concerns are reducing coal usage in electricity generation, leading to a decline in coal’s share in U.S. electricity generation. The industry’s earnings outlook is negative, with estimates declining by 47.2% for 2025.
Despite challenges, SunCoke Energy and Ramaco Resources, Inc. are two coal stocks worth watching, both with strong met coal production volumes and a Zacks Rank #3. SunCoke Energy focuses on metallurgical coal, while Ramaco Resources is poised to benefit from improving metallurgical coal demand and rare earth elements extraction initiatives.
Read more at Zacks Investment Research: 2 Coal Stocks to Watch Amid the Ongoing Weakness in the Industry – April 24, 2025