BAKU, Azerbaijan, June 11. Coal output in the US is forecast to decline by 6 percent year-on-year to over 560 million short tons (MMst) in 2023, and by a further 14 percent - to 480 MMst next year, Trend reports.
As the US Energy Information Administration (EIA) projected a decrease of 19 percent in coal demand by US electric power sector, the forecast for production has been downgraded as well. At the same time, demand from importers of US coal back the production in the country.
“The cost of coal delivered to electric generators averaged $2.51 per million British thermal units (MMBtu) in March 2023, the most recent historical data month. This price is down from a record $2.65/MMBtu reached in December 2022,” the agency said.
Thus, EIA forecastS the US delivered coal cost to average $2.48/MMBtu this year, before decreasing by 3 percent in 2024 to average $2.40/MMBtu. As the agency noted, the decline in coal prices are mostly the reflection of weakening demand.