Energy Information Administration (EIA), the principal agency of the US Federal Statistical System, has again trimmed the future coal production in the US.
EIA has estimated that US coal production would total 684 MMst in CY19 (down 9% Y-o-Y from CY18) and 640 MMst in CY20 (down 6% Y-o-Y from CY19).
The output figures are already significantly lower than the EIA’s previous forecast when the outlook suggested coal production would fall to 695 MMst in CY19 before declining to 664 MMst in CY20.
Earlier in CY18, US coal production totaled 756 MMst, down 2% Y-o-Y.
( MMst indicated Million Metric Short Ton | 1 US Short Tons equals to 0.907 Metric Ton)
EIA has highlighted in its report that coal production will continue to fall as both domestic consumption and exports, which reached a multi-year high in 2018, are expected to decline.
US electric sector which accounts for 90% of the total coal consumption, are likely to witness demand falling in line with the planned retirement of 7 GW (Giga Watts) of coal-fired plants by the end of 2020.
Moreover, in the short-term, EIA has predicted that the average US residential customer will use an average of 1,026 kilo watt hours (kWh) of electricity per month during the summer season that runs from June through August, 2019.
Notably, the consumption rate was estimated near about 5% less than the same period last year.
US coal exports: US has build a reputation of being a swing supplier to the seaborne market, but its coal export volumes are affected due to higher freight and production costs.
US coal export is likely to remain subdued in the outlook period with a decline in coal prices, which is also not helping the cause for a rise in US coal output.
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