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Weekly US coal production rises 5.6%

Houston — Weekly US coal production totaled an estimated 13.78 million st in the week that ended February 16, up 5.6% from a week earlier but down 10% compared with the year-ago week, US Energy Information Administration data showed Thursday.

It was the third time in the first seven weeks of the year that all four basins saw week-on-week increases.

The total for Week 7 was 18.3% below the five-year average and was the lowest output in the last 20 years for the corresponding week.

Utility stockpiles remain low on an aggregate basis, totaling an estimated 89.89 million st as of February 14, down roughly 26.4% compared with a year earlier, according to S&P Global Platts Analytics.

In the latest week, estimated coal production in Wyoming and Montana, which is primarily made up of production from the Powder River Basin, totaled 6.09 million st, up 5.3% week on week, but down 12.6% compared with the year-ago week.

Since January 1, the states have produced 41.04 million st, down 6.9% from the same period in 2018. Annualized production in the two states would total 315.89 million st, down 7.1% from a year ago.

In Central Appalachia, estimated weekly coal production was 1.84 million st, up 4.8% from a week earlier but 6.5% lower than in the year-ago week.

Year-to-date production in Central Appalachia is up 1% year on year at 12.56 million st and is the only major basin ahead of where it was a year ago. On an annualized basis, CAPP production would total 96.43 million st, also up 1% year on year.

Weekly coal production in Northern Appalachia totaled 1.96 million st, up 6.8% from the prior week, but 5.8% lower than the year-ago week’s figure.

Year-to-date production in the basin is down 0.4% year on year at 13.09 million st, while annualized NAPP production would total 100.58 million st, down 2.1% from last year.

In the Illinois Basin, estimated weekly coal production was 1.99 million st, up 6.5% from last week but 9.1% lower than in the year-ago week. Cumulative production in 2019 is up to 13.4 million st, down 3.3% on year, while annualized production in the basin would total 102.9 million st, down 1.8% from the estimated 2018 total.

Through the first seven weeks of the year, US coal production totaled an estimated 92.96 million st, down 4% year on year, while production on an annualized basis is expected to be around 714.72 million st, which would be down 4.8% from last year.

 

Edited by: S&P Global

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India’s #thermalcoal imports rise over 15% in Q1 – #indonesiancoal #uscoal #southafricancoal #australiancoal

India’s thermal coal imports rose by more than 15 percent in the first three months of 2018, with Indonesia accounting for about three-fifths of total supplies, according to vessel arrival data from Dubai-based coal trader American Fuels & Natural Resources.

India’s rising coal imports are contributing to higher demand across Asia this year, which has pushed benchmark Australian coal cargo prices above $100/t, a price not seen at this time of year in more than half a decade.

Imports rose to 39.6-million tonnes during the three months ended March 31, the data from American Fuels, a supplier of coal from the United States, showed.

That is up from 34.4-million tonnes of thermal coal during the first three months of 2017, according to Indian government data which matched the data from American Fuels.

Government data for the first three months of 2018 has not been released yet.

The American Fuels figures are broadly in line with data from an Indian-based trading company reviewed by Reuters that showed imports were 37-million tonnes in the quarter.

India will likely increase 2018 thermal coal imports after two straight years of declines because of domestic logistics bottlenecks, regulatory changes and surging power demand.

Vasudev Pamnani, a senior trader at American Fuels, said India’s demand for coal with a higher calorific value, most of which has to be imported, was increasing since buyers want more energy from the coal they purchase to offset higher prices and the logistical problems, mainly railway delays.

South Africa was the second-largest source of foreign coal during the first quarter, supplying about one-quarter of the total imports, with the United States and Australia being the next largest sources, the data showed.

Adani Enterprises, India’s largest coal trader, accounted for about one-sixth of all the imports, purchasing about 6.51-million tonnes during the period, the data showed.

The Tata Group imported 5.23-million tonnes of coal during the period with Swiss Singapore, part of the Aditya Birla Group, taking in 2.92-million and JSW Group bringing in 2.48-million.

The companies did not respond to requests for comment.

The ports of Mundra, Krishnapatnam and Kandla handled about the two-fifths of all of the imports, according to American Fuels.

EDITED BY: Reuters

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