US coal producers are slashing costs as sales realizations slip on an oversupplied domestic market and lower seaborne prices for metallurgical coal. Some companies reduced per-ton costs by more than 10pc on the year in the first quarter by improving operational efficiencies, cutting workers and consolidating output at lower-cost mines (see table). The efforts are crucial as spot steam coal prices stay near the level of per-ton costs in many US basins (see price graph).
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