Production up in all major US coal regions despite low gas prices

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Weekly US coal production totaled an estimated 15.21 million st in the week ended March 17, up 2.7% from the prior week and up 8.6% from the year-ago week, US Energy Information Administration data showed.

Weekly coal production estimates rallied after falling for three straight weeks.

Production estimates were up across all major basins even though natural gas prices remain relatively low, a trend that is expected to continue, and coal demand from utilities decreased due to plant closures.

S&P Global Platts Analytics estimates utility stockpiles for the week ended March 8 at 109.55 million st, up 1.5% from the week prior but down 33.9% compared with last year.

Based on EIA estimates through the first 11 weeks of the year, annualized US coal production in 2018 would total 767.67 million st, down 0.4% from last year.

For the recently concluded week, coal production in Wyoming and Montana, which primarily consists of coal from the Powder River Basin, totaled an estimated 6.76 million st, up 1.2% compared with the previous week and 8.5% from the year-ago week.

On an annualized basis, coal production in Wyoming and Montana would total 344.53 million st, down 2.5% from last year.

In Central Appalachia, weekly coal production totaled an estimated 1.95 million st, up 5.2% from the previous week and 20.2% from last year. Annualized 2018 production would total 96.59 million st, up 7.8% from last year.

In Northern Appalachia, weekly coal production totaled an estimated 2.07 million st, up 2.9% from the previous week and 6.5% from the year-ago week. Annualized production would total 104.31 million st, up 0.1% from last year.

In the Illinois Basin, weekly coal production totaled an estimated 2.11 million st, up 5.5% from the previous week and 6.6% from last year. Annualized production would total 104.81 million st, up 1.3% from 2018.

Source: PLATTS