Posco (PKX) (MEE) (PCX) (JRCC) Take Breather

Even with thermal coal demand rising, along with coal imports from China, POSCO (NYSE:PKX), Massey Energy (NYSE:MEE), Patriot Coal (NYSE:PCX) and James River Coal Co. (JRCC) still pulled back Thursday with the rest of the coal industry, as the sector took a breather.

Coal prices in China have been soaring as domestic producers face higher costs. That has led to Chinese utilities looking outside the country for cheaper prices.

According to China Coal Transport and Distribution Association imports in May will increase as a result of the domestic market conditions in the country.

Inventories at ports continue to be low, which should cause domestic coal prices to continue to push up, increasing the coal imports, which will benefit any coal producer with exposure in China.

POSCO closed Thursday at $109.08, falling $0.49, or 0.45 percent.