US coal stocks surged on Monday after President Donald Trump announced plans to increase coal production, citing a need to counter the dominance of other countries in the energy sector. Peabody Energy Corp rose nearly 5% in after-hours trading, while its peers including Warrior Met Coal Inc and SunCoke Energy Inc added up to 2%. The move reflects Trump’s agenda of reducing environmental regulations and increasing US energy production.
Trump claimed that the coal industry had been stifled by environmental extremists, but did not specify how his administration plans to boost coal use. This announcement follows Trump’s signing of an executive order in January aimed at increasing US energy dominance and his plan to heavily deregulate the oil industry.
The US has largely phased out coal use over the past three decades, with its share of power generation from black rock dropping to 19.7% in 2022 from 52.8% in 1997. The decline was driven by environmental concerns and cheaper alternatives such as natural gas and renewables.
However, other countries like China and India continue to rely heavily on coal for energy production. With valuations skyrocketing in 2024, investors are becoming cautious, but some analysts believe that top performers like SunCoke Energy Inc could offer opportunities for growth.
Source: https://in.investing.com/news/stock-market-news/peabody-us-coal-stocks-jump-as-trump-authorises-more-coal-production-4726623