BAKU, Azerbaijan, December 20. According to the International Energy Agency (IEA), coal production in the US dropped by 2.8% in 2023, totaling 524 million tons (Mt), Trend reports.
While domestic demand for coal saw a sharp decline, the difference in production was used to replenish inventories and meet international market demand.
In 2024, US coal production is expected to fall significantly by 12%, bringing total output down to 463 Mt. This reduction is anticipated to better align production with demand, which is projected to decline at a slower pace compared to 2023’s steep drop. The US Energy Information Administration (EIA) expects coal inventories to remain stable in 2024, holding at approximately 152 Mt by the year’s end, mostly stored at power plant sites.
In a notable shift, US coal production in April 2024 fell below 40 million short tonnes for the first time since the Covid-19 pandemic. Regionally, the Western US, which is primarily focused on domestic demand, saw the sharpest production cuts, though it remains sensitive to global coal prices, which are expected to decline in 2024. Meanwhile, the Appalachian region faced its lowest output in the second quarter of 2024 since the pandemic's early days, further impacted by the collapse of the Francis Scott Key Bridge in Baltimore, which hindered export efforts.
Looking ahead, the IEA forecasts a continued decline in US coal production, primarily driven by lower domestic and export demand. By 2027, production is expected to drop by 52 Mt, reaching a total of 410 Mt.