Metallurgical Coal and Coke Markets
In general, coal markets in the United States are understandably attentive to the demands of the electricity generation market. In Figure 4, the recent historical and projected demand for coal at coke plants and for all coal exports is a consistently diminishing quantity according to EIA.5 There are coal companies that supply these two markets, but the overall scale of electricity generation demand (not shown) predominates the current and future total coal demand. As a consequence, the electricity market will continue to take the vast majority of domestic coal production—both of traditional steam coal and of premium, low-sulfur bituminous “compliance coal” that comes largely from traditional met coal mining regions. Because of the quantities of coal and the magnitude of the contracts let, unless domestic met coal consumers succeed in forming more powerful purchasing blocks, electricity generators will continue to win lower prices for their coal deliveries. This applies even to coal qualifying as metallurgical grade.
The retail and general industry sector in Figure 4 includes any coal consumed at blast furnaces and foundries, which could not be shown separately. This sector, though relatively small, is projected to increase slightly after its projected low point in 2001.
The average price of U.S. coke has been increasing over the past 5 years, even as the average price for imported coke has decreased (Figure 3, Table II). This fact would seem to explain any decline in U.S. coke export quantities. For more than 10 years, however, the quantities of coke exports have been so small that gains or losses of one or two contracts are significant, and there are no clear patterns. Presumably, for some users, U.S. coke still offers qualities that match the requirements at their facilities.
Figure 3. Prices of Metallurgical Coal and Coke by Disposition
(Dollars per Short Ton) |
|---|
 |
Note: Prices for coal delivered to coke plants include all transportation; prices for imports include transportation to the port of entry, duties, and insurance costs (customs import value); exports include transportation to the port of departure (free alongside ship value) but not to overseas destination.
Sources: Energy Information Administration, Quarterly Coal Reports and U.S. Department of Commerce customs reports, EM 545 and IM 145.
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D
| Table II. Prices of Metallurgical Coal and Coke by Disposition (Dollars per Short Ton) |
|---|
| Year |
Quarter |
U.S. Coal to Coke Plants |
U.S. Met Coal Exports |
U.S Coke
Exports |
U.S. Imports of Coke |
|---|
| 1995 |
Q1 |
$47.19 |
$43.12 |
$79.90 |
$82.60 |
| Q2 |
$47.57 |
$43.61 |
$61.64 |
$86.56 |
| Q3 |
$47.02 |
$45.11 |
$69.84 |
$86.22 |
| Q4 |
$47.56 |
$44.97 |
$62.27 |
$85.02 |
| 1996 |
Q1 |
$47.45 |
$46.25 |
$63.70 |
$90.60 |
| Q2 |
$48.39 |
$45.61 |
$52.15 |
$93.79 |
| Q3 |
$46.02 |
$44.94 |
$53.33 |
$105.70 |
| Q4 |
$47.33 |
$44.89 |
$54.58 |
$99.51 |
| 1997 |
Q1 |
$48.16 |
$46.57 |
$104.39 |
$96.41 |
| Q2 |
$48.24 |
$45.46 |
$59.62 |
$80.04 |
| Q3 |
$46.71 |
$44.54 |
$61.47 |
$71.44 |
| Q4 |
$47.40 |
$44.94 |
$66.56 |
$80.44 |
| 1998 |
Q1 |
$45.79 |
$45.92 |
$114.56 |
$71.18 |
| Q2 |
$45.84 |
$44.63 |
$88.81 |
$78.07 |
| Q3 |
$46.43 |
$43.76 |
$95.15 |
$76.65 |
| Q4 |
$46.17 |
$43.31 |
$78.80 |
$66.20 |
| 1999 |
Q1 |
$46.56 |
$44.84 |
$112.29 |
$71.62 |
| Q2 |
$46.37 |
$41.87 |
$97.02 |
$73.09 |
| Q3 |
$44.92 |
$40.25 |
$88.12 |
$66.20 |
| Q4 |
$45.57 |
$40.16 |
$90.51 |
$69.59 |
| 2000 |
Q1 |
$44.45 |
$40.59 |
$114.70 |
$67.37 |
| Q2 |
$44.39 |
$38.20 |
$95.07 |
$64.26 |
| Q3 |
$44.39 |
$39.31 |
$94.63 |
$65.93 |
| Q4 |
$44.30 |
$37.64 |
$71.00 |
$66.35 |
| 2001 |
Q1 |
$45.29 |
$39.15 |
$96.23 |
$69.22 |
| Q2 |
$45.65 |
$39.82 |
$92.22 |
$72.47 |
| Source: Energy Information Administration, Quarterly Coal Report. |
Metallurgical Coal and Coke Markets (Continued)
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