The value of micro cap stock for James River Coal Company grew during trading on Wednesday, as the firm benefited from news that foreign demand for the energy commodity was due to increase.
While the demand for coal has dwindled slightly due to the emergence of natural gas as a prominent energy resource, according to the Paragon Report, a resurgence of the commodity has occurred due to an upswing in a number of Chinese steel projects.
The Asian superpower recently approved the equivalent of $23 billion in steel projects, and this increased demand came as India's coal production is failing to meet China's rising need for the commodity.
According to Seeking Alpha, a number of companies within the coal market have taken a pounding during 2012, but James River Coal is one of the few firms that has upward potential due to the rise in foreign demand and a large amount of cash on its balance sheet.
The value of James River shares increased $0.45 to $3.14 at 3:32 p.m. on June 20, an increase of 17.1 percent.