Coal news and updates

Powder River Basin Coal Prices Rise for a 3rd Straight Week

Powder River Basin

PRB (Powder River Basin) coal spot prices averaged $10.25 per ton for the week ended June 19—a 17 cent increase from the week of June 12. PRB coal prices have remained under pressure since the start of the year due to low natural gas prices. In April and the beginning of May, PRB coal prices were down to the sub-$10 level.

The PRB is located in Wyoming and Montana. It’s the largest coal-producing region in the United States. It produces almost half of the total US coal output. The PRB is also the lowest-cost thermal coal–producing region in the world.

Peabody Energy (BTU), Arch Coal (ACI), and Cloud Peak Energy (CLD) are major coal producers (KOL) that operate in the region.

Illinois Basin

The ILB (Illinois Basin) is located in Illinois, Ohio, and western Kentucky. The region produces high-sulfur coal. In recent years, ILB coal became competitive with coal from the neighboring Appalachian region. Most power plants installed scrubbers to soak sulfur because it sulfur causes acid rain. Peabody Energy and Alliance Resource Partners (ARLP) are major players that operate in the region.

ILB coal prices remained steady at $40.45 per ton during the week of June 19.
Appalachia

The Appalachian region is located in the eastern United States. It’s the oldest coal-producing region in the country. It’s affected the most by natural gas price movements. However, because Appalachian coal prices are already down to marginal costs, they show a reduced correlation with natural gas prices.

Central Appalachian thermal coal prices continued to slide downwards. Central Appalachian thermal coal prices came in at $41.12 per ton during the week ended June 12—down 79 cents from the previous week. North Appalachian coal prices remained stable at $58.75 per ton for the third straight week.

source: http://marketrealist.com