According to the Zhixin Finance APP, as the demand for coal in the USA weakens, Peabody Energy (BTU.US) has reached an agreement to focus on the growth of the global steel market. It is reported that the largest coal mining company in the USA, Peabody, agreed on Monday to acquire four coal mines of Anglo American (NGLOY.US) in Australia for 3.78 billion US dollars. These coal mines supply key raw materials—metallurgical coal for steelmaking. This deal will help Peabody nearly double its metallurgical coal production within two years, positioning this St. Louis-based company to potentially become the third-largest exporter in the world.

Mark Spurbeck, chief financial officer of Peabody, said on Monday: 'This is a significant change. This deal will reshape Peabody.'

On Monday, Peabody's stock price fell by 6.6% at one point, marking the largest intraday decline since August 5th.

Peabody is a major supplier of thermal coal for power plants, but in recent years, as utility companies reduce coal combustion, the company has been seeking to change its structure. Steel production is also a major source of greenhouse gas emissions, but it is crucial for most large infrastructure projects and is expected to see an increase in demand.

Spurbeck stated that the deal with Anglo American Group means that approximately 74% of Peabody's revenue is expected to come from metallurgical coal exports, higher than the current 50%.

It is also worth noting that the mines Peabody is acquiring are located in Australia, close to the rapidly growing economies of Asia. The company expects this deal to be completed by mid-2025 and to generate immediate returns.

Andy Blumenfeld, Director of Data Analysis at McCloskey by Opis, stated that this transaction comes at a time when china's steel production is showing signs of rebound, and Peabody may ship more metallurgical coal to 'anywhere' in asia. India, japan, and emerging economies in southeast asia will all have urgent need for metallurgical coal.

Blumenfeld said: 'They need steel. This is crucial for the growth of any economy.'