U.S. coal companies say they are set to prosper as the world steps back from nuclear power amid the ongoing reactor crisis in Japan.

With Germany issuing a three-month ban on seven aging nuclear power stations, the country is importing additional coal from the Appalachian mountains to make up the difference. Other countries across Europe are looking to the United States to supplement their normal imports, since normal suppliers like South Africa, Russia and Colombia are shipping coal to Asia to meet a growing demand there.

That has already bumped prices up. Coal is being sold to Europe for $132 a metric ton, up from $123 before the disaster, while prices on the New York Mercantile Exchange are already topping $75 a ton, up from $71 before the crisis.

"The market looks pretty good for Europe for the longer term," said Dan Zajdel, vice president of investor relations for coal shipper Consol Energy Inc. "It could be very profitable for us to ship over there."

The increased demand comes as foreign consumption of U.S. coal was already rising. Flooding in Australia severely crippled that country's coal export business and a global resurgence in manufacturing has meant more coal is needed. With nuclear on the decline, coal and natural gas are the only viable alternatives.

It is thought that Japan will have to import an additional 5 million to 10 million tons of thermal coal this year, up from its normal intake of 120 million (Matt Whittaker, Wall Street Journal [subscription required], March 20). -- JP