Coal news and updates

CSX coal revenues and volumes were down about 20% in the third quarter this year compared to the same period a year ago, the company said Wednesday in its earnings report.

 

The railroad's coal volumes fell to 207,000 carloads in Q3 from 261,000 carloads in the same quarter last year. Total coal tonnage shipped slipped 20% to 24 million st from 29.9 million st.

 

Coal revenue sank 20% to $467 million, while revenue per carload was slightly higher, up 1% to $2,256.

 

Domestic thermal coal volumes fell 20% from the year-ago quarter to 13.4 million st and are down 29% through three quarters to 37.3 million st. The railroad said in its report thermal volume declines, though still significant, began to moderate as hot summer weather drove additional demand despite high coal inventories and low natural gas prices.

Domestic coking coal volumes were down 23% to 5 million st in the quarter and are down 24% to 14.4 million st through nine months. CSX noted volumes remained weak in an oversupplied coke market, driven by continued softness in domestic integrated steel production and the idling of a customer facility.

 

The railroad's export coal volumes dropped 15% in Q3 from the year-ago quarter to 5.6 million st. Metallurgical exports saw a 5% decrease to 4.1 million st. Thermal exports accounted for a majority of the seaborne decline, with volumes falling 35% to 1.5 million st.

 

CSX said export volumes were down due to oversupply in the world market and a strong US dollar that continued to hinder US producer competitiveness. However, both metallurgical and thermal benchmarks improved during the quarter such that the rate of volume decline became considerably less when compared to previous quarters.

 

Total CSX coal exports are down 28% through the first three quarters to 17.8 million st.

 

Overall, the railroad posted net earnings of $455 million in Q3, down 10% from $507 million in the year-ago period.

SOurce: Platts