BAKU, Azerbaijan, November 11. Coal production in the US in 2023 is projected at 585 million short tons (MMst), Trend reports.
According to the US Energy Information Administration Agency (EIA), US' coal output over the next year is expected to plummet by over 100 MMst to 480 MMst.
This substantial drop is attributed to diminishing demand from the US electric power sector, the agency said. The decrease in coal production is also influenced by ample coal inventories held by electric generating plants.
In late 2023, there is a 50-percent increase in coal stocks at plants compared to mid-2022. Despite reduced coal prices resulting from decreased demand, coal-fired power generation remains economically uncompetitive. The EIA's expectations, forecasting natural gas prices for electric generation to average around $3.50/MMBtu in 2024, contribute to this assessment.
While domestic demand-driven declines impact US coal production, there is a partial offset through a resurgence in demand from export markets, returning to pre-pandemic levels. The agency anticipates a 13-percent increase in exports, reaching 97 MMst in 2023, followed by a slight dip to 94 MMst in 2024. After dropping to 69 MMst in 2020, exports rebounded to 86 MMst in 2022. The resurgence in coal exports to pre-pandemic levels includes both steam and metallurgical coal exports to customers in Europe and Asia, with European exports benefitting from a ban on Russian coal imports due to the war in Ukraine.