The value of micro cap stock for Patriot Coal Corporation (NYSE:PCX) rose during trading on Tuesday morning, as the company benefited from news that increased coal demand would be pushing the price of the commodity upward.
According to a joint release with James River Coal, the company announced news that strong foreign demand for coal has pushed the price of the energy source back up, after several months of a drop in value.
"We project they will reach a record 285 million tons in 2012 as the country increasingly looks to the seaborne coal markets," Peabody Energy CEO Gregory Boyce said during a recent industry conference. "We expect global metallurgical coal use to increase 25 percent by 2016, translating to an additional 250 million tons of demand growth, with the bulk of increases led by China and India."
Seeking Alpha reported that companies in the sector are trying to ramp up production to meet the increased demand, while it lasts.
The value of Patriot Coal's stock rose $0.38 to $1.76 at 10:40 a.m. on July 3, an increase of 26.1 percent.