WEEKLY COAL PRODUCTION AND PRICE REPORT -- 5/2/15

Coal production in the U.S. again finished lower this past week, according to the latest report from the Energy Information Agency (EIA) and the National Mining Association.

Production in the United States is down by 1.63 million tons (7.6%) for the week ending May 2 compared to the same time last year. Production for the week stood at 17.36 million tons compared to 18.98 million tons for the same week in 2014. Cumulative production for the year-to-date is also down sharply as of May 2 coming in at 315.27 million tons compared to 333.86 million tons last year – a decline of 18.59 million tons or 5.4%.  Production for the previous 52 weeks also trended lower – finishing at 979.05 million tons compared to 986.49 million tons for the same period ending in 2014.

The number of rail car loadings was also down sharply, finishing the week down 9.7% from the same period last year. Rail car loadings are also down sharply year-to-date – off 5.3% from the same period in 2014.

ANNOUNCEMENTS & APPOINTMENTS

WVCA member Arch Coal announced John Eaves has been elected chairman and CEO, effective immediately, succeeding Wesley Taylor, who will remain on the Arch Coal board. John was elected to Arch's board in 2006 and was elected its president and chief executive officer in 2012.  Arch also announced that Paul A. Lang, previously Arch's executive vice president and chief operating officer, has been elected president and chief operating officer, effective immediately.

Thursday, Governor Tomblin appointed Democrat Steven Shaffer to fill the vacancy created by the resignation of Larry Williams (D-Preston County-52nd District). Williams resigned on April 15th and Shaffer's appointment is effective immediately.  Shaffer, 60, is a longtime resident of Preston County who has served as Mayor of Tunnelton, a member of the Board of Education and an Assistant Prosecutor in Preston County.  He has an accounting degree from Fairmont State University, a law degree from WVU and is currently a partner at Estep & Shaffer, L.C., Attorneys at Law in Kingwood.  Shaffer was a candidate for the State Senate last year opposing longtime Preston County Republican Senator Dave Sypolt. 

WEEKLY COAL PRODUCTION AND PRICE REPORT 5/1/15

Commodity/Fuel

Avg. BTU

SO2

  Price

Price/mmBTU

Central Appalachia

12,500

1.2

 $ 52.88

 $ 2.12

Northern Appalachia

13,000

3.0

 $ 60.92

 $ 2.34

Illinois Basin

11,800

5.0

 $ 40.77

 $ 1.73

Powder River Basin

  8,800

0.8

 $ 11.55

 $ 0.66

Uinta Basin

 11,700

0.8

 $ 39.82

 $ 1.70

Natural Gas (Henry Hub)

    n/a

0.01

     n/a

 $ 2.50

Coal production in the U.S. again finished lower this past week, according to the latest report from the Energy Information Agency (EIA) and the National Mining Association.

Production in the United States is down by 2.2 million tons (11.6%) for the week ending April 25 compared to the same time last year. Production for the week stood at 16.92 million tons compared to 19.14 million tons for the same week in 2014. Cumulative production for the year-to-date is also down sharply as of April 25 coming in at 298.36 million tons compared to 314.85 million tons last year – a decline of 16.49 million tons or 5.2%.  Production for the previous 52 weeks was also lower – finishing at 980.67 million tons compared to 113.31 million tons for the same period ending in 2014.

The number of rail car loadings was also down sharply, finishing the week down13.2% from the same period last year. Rail car loadings are also down sharply year-to-date – off 5.2% from the same period in 2014.

Electric output was up slightly – by 1.1% for the week ending April 25 – but is down (-0.3%) year-to-date. Steel output continued its decline, down 7.3% for the week, finished at 1.71 million tons produced, with a capacity utilization factor of 76.6%, and it continues its slide year-to-date — down 6.9% to 28.12 million tons produced compared to 30.22 million tons for the same period last year. A decline in steel production is considered a leading indicator of the broader economy and the continued declines we are seeing in steel production usually translate into declines in durable goods orders and a softening of the national economy.

RESPONSE TO KABLER GAZETTE ARTICLE

NOTE: This April 30th response by Chris Hamilton sent to the Gazette attempting to correct an article which ran this week with columnist Phil Kabler stating the Legislature “rolled back” some of the safety laws enacted under former Governor Manchin.  Chris also took opportunity to point out that much of the prosperity the state enjoyed under Manchin can be attributed to the coal industry and builds the case for the state to do more to help coal recover.  

In Phil Kabler’s April 26th column, “Next Governor Will Have Difficult Job”, he points out some of the positive gains made when now-Sen. Joe Manchin was Governor of West Virginia, including in the sensitive area of mine safety.  

REMINDER -- SPRING MEETING – COAL HALL OF FAME

The 2015 Joint Spring Meeting of the WV Coal Association, the WV Coal Mining Institute and the Central Appalachian Section of SME will be held at the Stonewall Jackson Resort, May 13-15, 2015.  Chris Hamilton will be presenting on the 14th during this meeting “The 2015 Legislature and Coal – West Virginia’s ‘New Reality’.

The installation of the fifteenth class of inductees to the WV Coal Hall of Fame will be held on Thursday evening honoring Calvin Kidd and L. Newton Thomas, Jr.

Contact the WVCMI at (304) 293-4179 for reservations.