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  Introduction

Coal Prices, Supplies,
and Demand


Metallurgical Coal and Coke Markets


Coal Futures Markets

References

Tables

Table I. Average Quarterly U.S. Coal Prices

Table II. Prices of Metallurgical Coal and Coke by Disposition

Table III. Average Price of Coal Receipts at Coke Plants by Census Division

Table IV. U.S. Metallurgical Coal Disposition

Table V. Coke Supplies, Blast Furnace Production, and Iron and Steel Imports

Figures

Figure 1. Average Biweekly Spot Coal Prices, 2000-2001

Figure 2. Average Quarterly U.S. Coal Prices

Figure 3. Prices of Metallurgical Coal and Coke by Disposition

Figure 4. Coke Plants and Other Industries Are Minor Factors in Historical and Projected Coal Demand

Figure 5. U.S. Met Coal Exports Plunge as Domestic Demand Holds

Figure 6. Iron and Steel Imports Capture Market Growth

Figure 7. NYMEX Central Appalachian Coal Futures Near-Month Contract Final Settlement Price

Figure 8. Daily Volume Central Appalachian Coal Futures Contracts

U.S. Metallurgical Coal and Coke Supplies–Prices, Availability, and the Emerging Futures Markets

Coal Prices, Supplies, and Demand (Continued)

Table I. Average Quarterly U.S. Coal Prices
Year Quarter Electric Utilities Coke Plants Other Industrial
1995 Q1 $27.35 $47.19 $32.51
1995 Q2 $27.46 $47.57 $32.52
1995 Q3 $26.79 $47.02 $32.36
1995 Q4 $26.47 $47.56 $32.32
1996 Q1 $26.54 $47.45 $32.51
1996 Q2 $26.89 $48.39 $32.39
1996 Q3 $26.10 $46.02 $32.12
1996 Q4 $26.31 $47.33 $32.28
1997 Q1 $26.54 $48.16 $32.60
1997 Q2 $26.49 $48.24 $32.29
1997 Q3 $25.72 $46.71 $32.33
1997 Q4 $25.92 $47.40 $32.40
1998 Q1 $25.90 $45.79 $32.83
1998 Q2 $25.92 $45.84 $31.93
1998 Q3 $25.66 $46.43 $32.18
1998 Q4 $25.09 $46.17 $32.28
1999 Q1 $25.15 $46.56 $32.06
1999 Q2 $25.03 $46.37 $31.62
1999 Q3 $24.45 $44.92 $31.44
1999 Q4 $24.28 $45.57 $31.28
2000 Q1 $24.52 $44.45 $31.47
2000 Q2 $24.77 $44.39 $31.47
2000 Q3 $23.83 $44.39 $31.48
2000 Q4 $23.99 $44.30 $31.42
2001 Q1 $24.81 $45.29 $32.64
2001 Q2 $24.93 $45.65 $33.69
   Source: Energy Information Administration, Quarterly Coal Report.

The coal most analogous to the metallurgical coal consumed at U.S. coke plants is U.S. metallurgical coal exports, and even in that case domestic consumers on average pay a higher price (Figure 3, Table II). This is possibly because coal for export is awarded a better rail rate to the port than is coal to domestic consumers. Considering that most metallurgical coal for export is shipped from Central Appalachia to Hampton or Newport News, Virginia—an average distance of roughly 500 miles—many U.S. coke plant operators may be paying either a higher rate per ton or a higher rate per ton-mile. Based on the data in Table II, the railroads received an average of $3.30 more per ton between January 1990 and June 1995 for metallurgical coal delivered to domestic coke plants than to deepwater ports.

Although there are too few coke plants in the Mountain and the South Atlantic Census Divisions to allow disclosure, it appears from Table III that customers in the East South Central Division (Mississippi, Alabama, Tennessee, and Kentucky) and the East North Central Division (Illinois, Indiana, Ohio, Michigan, and Wisconsin) pay an additional premium for their metallurgical coal shipments. Both regions pay more than a dollar per ton over the national average on their receipts.