43 Federal Emergency Orders to Keep Plants Alive, U.S. Coal Up 13%, China Commissioning at a Decade High, Plus a Primer on the Industry Most Investors Don't Understand
One point I don’t follow. You state that low cost producers see margins expand more in response to price moves. This seems counter intuitive to me. Why isn’t it the other way around?
Fair point. Per-ton, you're right. The asymmetry I had in mind is at the company level. Low-cost producers tend to operate at much higher volumes, so the same per-ton move expands their total dollar margins more.
Excellent article! Thank you for all the information, which most of us do not know.
One point I don’t follow. You state that low cost producers see margins expand more in response to price moves. This seems counter intuitive to me. Why isn’t it the other way around?
p.s. I'd also add that low-cost producers also survive cycles better, which is why capital flows toward them first when sentiment turns.
Fair point. Per-ton, you're right. The asymmetry I had in mind is at the company level. Low-cost producers tend to operate at much higher volumes, so the same per-ton move expands their total dollar margins more.
Extremely informative. Thank you.