Coal news and updates

Hampton Roads coal exports totaled 4,091,402 short tons in August, up 9.9% from July but down 10.5% from the year-ago month, according to figures released Monday by the Virginia Maritime Association.

 

For the year, coal exports total 34.6 million st, down 0.7% through the same period last year.

 

Despite concerns that weak overseas pricing would dampen US exports, producers are working with customers to make sure the market stays afloat, such as transitioning to quarterly contracts, said Anita Strickland, the manager of coal services for Norfolk, Virginia-based shipping agency T. Parker Host.

While a number of long-term contracts are still in play, Strickland said producers and shippers are "making little or breaking even at best" on newer contracts in order to keep business. Strickland said the shorter contracts are for both thermal and metallurgical customers.

 

"Our customers are holding on for the majority and it doesn't look like (coal) is going to fall off the cliff anytime soon," Strickland said. "While we're down, it's a slow decline, but nothing of a rapid nature."

 

Lambert's Point, owned and operated by Norfolk Southern, exported 1,667,834 st in August, down 11.2% from the prior month and down 4.5% from the same month a year ago.

 

Year-to-date coal exports from Lambert's Point total 14.4 million st, up 6.7% through the same period last year.

 

Pier IX, owned and operated by Kinder Morgan, exported 1,107,557 st in August, up 20.3% from July but down 15.8% from August 2012.

 

For the year, Pier IX coal exports total 9.4 million st, down 14.3% compared with the year-ago period.

 

Dominion Terminal Associates, which is owned by Arch Coal, Peabody Energy and Alpha Natural Resources, exported 1,316,012 st in August, up 42.5% from the prior month but down 12.7% from the year-ago month.

 

DTA's year-to-date exports total 10.7 million, up 4.3% through the same period last year.

 

The three terminals also ship coal to domestic destinations. In August, coastwise shipments totaled 58,825 st, down 38.3% from July and down 74.4% from August 2012.

 

For the year, domestic coal shipments total 1,009,216 st, up 8.4% compared with the same period last year.

 

The US exported a record 126 million st in 2012, according to the US Energy Information Administration. In August, the agency said it projects US coal exports will total 114.2 million st in 2013, a 10.3% decline from the prior year.

 

 

Source: Platts