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USA Coal Output Up Last Year but Demand Down as Prices Rose: EIA

Coal production in the USA grew to 594.2 MMst but consumption fell to 515.5 MMst in 2022 year on year amid a surge in prices.

Coal production in the USA grew 2.9 percent in 2022 to 594.2 million short tons (MMst) compared to 2021 but consumption fell 5.5 percent year on year to 515.5 MMst amid a surge in prices, according to official data released recently.

Last year had 548 producing coal mines, 36 more than the prior year's, with an average capacity utilization of 68 percent, compared to 66.1 percent in 2021, the country's Energy Information Administration (EIA) said in its Annual Coal Report published Tuesday.

The Western region accounted for 334.8 MMst of the total national coal output last year, up 1.9 percent year over year. Wyoming, the region's biggest coal-producing state, saw a 2.5 percent increase to 244.7 MMst. "Other large producing states in the basin include North Dakota, where production increased by 0.8 percent to 26.7 MMst; Colorado, where production increased by 7.7 percent to 12.8 MMst; and Montana, where production decreased by 1.2 percent to 28.2 MMst", the report stated.

Meanwhile Texas was the top destination state for coal 2022, receiving around 58 MMst of volumes from USA mines, according to the EIA's separate Annual Coal Distribution Report simultaneously released.

However, amid soaring coal prices, domestic demand fell, with a 28.6 MMst decrease to 472.8 MMst in the electric power sector, which comprised about 91.7 percent of the total consumption last year, the Annual Coal Report said. Consumption in the industrial, coke, and commercial and institutional sectors dropped 3.5 percent to 42.7 MMst against 2021.

The total average sales price of coal from domestic mines climbed 49.4 percent from 2021 to $54.46 per short ton. "The average sales price of thermal coal in 2022 increased by 33.7 percent from 2021 to $34.57 per short ton, and the average sales price of metallurgical coal in 2022 increased by 72.9 percent from 2021 to $262.72 per short ton", read the Annual Coal Report. "The average sales price of coal from surface mines increased by 37.0 percent to $29.20 per short ton, and the average sales price of coal from underground mines increased by 59.5 percent to $96.47 per short ton".

While domestic consumption slid, exports inched up one MMst to 86 MMst year on year with Europe the leading market accounting for 33.6 MMst. "Steam coal exports accounted for 45.9 percent (39.5 MMst) of the total, and metallurgical coal accounted for 54.1 percent (46.5 MMst)", the Annual Coal Report said.

Coal reserves in the USA that are technologically and economically feasible to extract based on producer data fell to 11,737 MMst at yearend 2022 from 12,282 MMst at the end of 2021. "Although declines were reported for most states, increases were reported for Alabama, Eastern Kentucky, Maryland, Virginia, and West Virginia", the Annual Coal Report said.