U.S. thermal coal prices headed mostly higher in the week that ended March 23 as natural gas futures rallied above $3/MMBtu, but the coal market’s gains lagged those of the natural gas market. As the prompt-month Henry Hub futures contract climbed 5.1% on the week, Powder River Basin prices for delivery next month edged 1.6% higher to $11.58/ton, while longer-dated Powder River Basin contracts moved only 0.3% higher. Prices for 12,500 Btu/lb, less-than-1% sulfur coal were mixed, with the price for delivery in 2018 climbing 2.9% on the week while nearby prices remained relatively unchanged. During 2016, producers aggressively cut coal production in the face of market headwinds, including low natural gas prices and elevated coal stockpiles. Weakness in international coal markets had added to domestic producers’ woes as U.S. coal that would otherwise have been shipped overseas was absorbed into the nation’s supply.
展开▼