New Delhi [India], January 12 (ANI): In a significant uptick, the United States witnessed a robust 18.9 per cent increase in weekly coal production, reaching 10.3 million short tons for the week ending January 6, according to the latest data released by the US Energy Information Administration (EIA).
According to S&P Global Commodity Insights, despite a 7.2 per cent decline compared to the same week in the previous year, all major coal-producing regions in the US experienced a surge in output compared to the prior week. The Central Appalachia (CAPP) region led the way with an impressive 22.2 per cent growth, contributing 1.4 million short tonnes to the overall production.
However, CAPP’s production was 2.1 per cent lower than the same week in the preceding year.
Central Appalachia Thacker/Kenova 12,500 Btu/lb Norfolk Southern-delivered rail coal for the second quarter saw an increase of 25 cents to USD 73.50/st on January 5, reflecting market dynamics.
Northern Appalachia also recorded a substantial rise of 21.7 per cent, producing 1.6 million short tonnes in the first week of 2024. Nevertheless, the year-over-year figures indicated a 4.5 per cent decrease in production.
The Illinois Basin reported a 20 per cent growth in coal production, contributing 1.4 million short tonnes, but faced an 8.2 per cent decline compared to the same week last year.
Second quarter-delivered Illinois Basin 11,800 Btu/lb rail coal dropped 10 cents from the prior session to USD 42.90/st on January 5.
Meanwhile, the Powder River Basin (PRB), encompassing Wyoming and Montana, demonstrated an 18.7 per cent surge, producing 4.6 million short tonnes.
Despite this weekly increase, PRB coal production showed a 6.7 per cent decline from the corresponding week in the previous year. Powder River Basin 9,400 Btu/lb rail coal remained flat at USD 14.95/st.
The report provides insights into the dynamic coal industry landscape, emphasising regional disparities in production and the complex interplay of market forces affecting coal prices.
Platts, a part of S&P Global Commodity Insights, is closely monitoring these developments as the energy sector navigates through changing production patterns and market trends. (ANI)
