China's slowdown hits hard in some Appalachian communities that mine metallurgical coal

"Slowing growth in China is taking a brutal toll on Appalachian coal mines and coal towns," Kris Maher reports for The Wall Street Journal from Wharton, W.Va., where he photographed laid-off miner Phillip Powell, 38, and his family. "A lot of guys that I worked with are scared of losing everything they own," he said.

"The Chinese economy is slowing and so is its steel industry. That has sent the price of coal used for steelmaking down nearly 50 percent to $170 a metric ton. Those coal producers who counted on Chinese sales are reeling," Maher writes. "While many have blamed the downturn in the U.S. coal industry on cheap natural gas supplanting coal and tougher environmental regulations, the slide in metallurgical coal demand has been equally devastating. Coal companies were caught flat-footed after ramping up production last year with the expectation that steep prices would cover their rising costs, despite coal's past cyclicality. Instead, demand in China began to falter just as Australian metallurgical coal production—interrupted by floods last year—surged back into the market." (Read more)