US coal production sags as consumption falls

OREANDA-NEWS. Production in major US coal producing regions is trailing year-earlier levels as fuel consumption has fallen in the power sector, inventory levels have recovered and producers are laying off workers amid uncertain demand.

US production during the week ended 16 May was 16mn short tones (14.5mn metric tonnes), down by 14pc from the year-earlier period, US Energy Information Administration estimates show.

Appalachian coal production is leading the downward trend. Production in that basin is down by 17pc year over year, to 4.4mn st. Recovery prospects are uncertain. Consol Energy this week announced a cut in its Pennsylvania coal mines' work schedule to four days a week, citing commodity price falls.

Illnois basin output was 2.2mn st last week, down by 11pc on the year. In the west, Powder River basin production in Wyoming and Montana totaled 6.9mn st, off by 13pc. Utah-Colorado production was 700,000 st, down by 17pc on the year.

The four-week sliding average production in all major regions has trended lower. Federal meteorologists predict a cooler-than-normal summer in Texas and parts of the midcontinent, which will cap Powder River and Illinois basin demand.

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