In the week ending December 23, the United States recorded a surge in coal production, reaching 11.3 million short tons (st), marking a 7.5% increase compared to the same week the previous year. This information is based on data released by the U.S. Energy Information Administration on December 28.
The weekly coal production figure also demonstrated a 2% rise when compared to the preceding week. From January 1 through December 23, the cumulative coal production for the year amounted to 571.7 million st, reflecting a 2.1% decrease from the corresponding period in 2022.
Several major coal-producing regions in the U.S. reported increased output during the specified week. Notably, the Powder River Basin (PRB) registered the most significant growth, encompassing Wyoming and Montana. The PRB’s weekly coal production increased by 3.2%, contributing to a 6.8% year-over-year rise. Over 51 weeks, the PRB produced 261.1 million st, marking a 2.7% decrease compared to the same period in 2022.
The Platts Weekly Price Survey by S&P Global Commodity Insights revealed that Powder River Basin 9,400 Btu/lb rail coal for prompt-quarter delivery held steady at $14.95/st on December 22.
In the Northern Appalachia region, coal production saw a 1.4% weekly increase and a 7.4% rise on a yearly basis, reaching 1.7 million st. Total coal production in Northern Appalachia for the first 51 weeks of the year amounted to 86.7 million st, showing a marginal 0.1% decline from the previous year.
Meanwhile, NAPP Pittsburgh Seam 13,000 Btu/lb rail coal witnessed a decrease of $1.25 from the prior session, settling at $50.75/st on December 22, according to the Platts Weekly Price Survey. The assessment took into account market fundamentals and a broker indication of value at $52.50/st, considering a sulfur-normalized broker indication of value at $48.99/st.
Central Appalachia reported a production of 1.5 million st in the latest reported week, indicating a modest 0.4% decline. However, when compared to the year-ago week, Central Appalachia’s coal production surged by 16.4%. From January 1 through December 23, the region produced 74.7 million st, reflecting an 8.4% increase from the same period in 2022.
The Platts assessment for CAPP Thacker/Kenova 12,500 Btu/lb Norfolk Southern rail coal for the second quarter remained unchanged at $75.75/st on December 22. The assessment considered broker indications of value at $74.50/st and $75/st, tested in the market through 11:30 am ET.
In the Illinois Basin, coal production increased by 1% on a weekly basis, totaling 1.5 million st. Compared to the year-ago week, Illinois Basin coal production demonstrated a robust 10.5% increase. From January 1 through December 23, the region produced 77.6 million st, marking a 1.9% rise from the previous year.
The Platts report also indicated that Illinois Basin 11,800 Btu/lb rail coal for prompt-month delivery experienced a decrease of 25 cents from the prior session, settling at $43/st on December 22.