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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

Metallurgical Coal and Coke Markets (Continued)

Table IV. U.S. Metallurgical Coal Disposition
(Thousand Short Tons)
Year Quarter Coal Consumed at Coke Plants U.S. Met Coal Exports Imported Coal Receipts at Coke Plants
(as quarterly averages)
Imported Coal Receipts at Coke Plants
(annual data)
1995 Q1 8,140 11,714 344  
Q2 8,291 13,358 344  
Q3 8,330 13,714 344  
Q4 8,251 13,303 344 1,377
1996 Q1 7,958 12,349 328  
Q2 7,965 13,050 328  
Q3 8,016 13,988 328  
Q4 7,767 13,563 328 1,313
1997 Q1 7,590 12,315 213  
Q2 7,410 13,225 213  
Q3 7,700 13,192 213  
Q4 7,503 13,422 213 852
1998 Q1 6,735 12,341 348  
Q2 7,239 12,488 348  
Q3 7,172 11,706 348  
Q4 7,042 10,559 348 1,392
1999 Q1 6,795 8,569 181  
Q2 7,072 8,022 181  
Q3 7,024 7,459 181  
Q4 7,216 8,079 181 724
2000 Q1 7,322 7,887 347  
Q2 7,445 7,479 347  
Q3 7,295 9,171 347  
Q4 6,877 8,289 347 1,390
2001 Q1 6,811 7,045    
Q2 6,952 6,745    
   Source: Energy Information Administration, Quarterly Coal Report and Coal Industry Annual.

Figure 6 shows that the production at blast furnaces has remained relatively steady during the period (declining slightly). Likewise has the supply of coke at blast furnaces (receipts of coke were used in Table V rather than consumption data because no data are collected on consumption of coke imports; therefore, receipts were used along with exports to estimate total supply).

More importantly, what effects can be discerned from the steadily increasing levels of iron and steel imports into the United States? Based on the fact that domestic coke supplies have remained constant and that net blast furnace production has been relatively steady since 1992, the obvious conclusion is that iron and steel imports have captured all the potential growth the domestic industry might have planned on. Given that the ability of any U.S. company to compete in iron production or steel products requires increasing efficiency—sometimes linked to larger-scale facilities—and demands adherence to stricter environmental requirements, the result has been the failures of smaller, less-efficient, and less well capitalized operations. The domestic output has remained steady as the survivors have serviced domestic demand. Meanwhile, the imports won the increases in demand of the growing U.S. economy during the 1990's.

D
Figure 6. Iron and Steel Imports Capture Market Growth
Figure 6. Iron and Steel Imports Capture Market Growth
Source: American Iron and Steel Institute, Annual Statistical Reports, and Energy Information Administration, Quarterly Coal Report.

Table V. Coke Supplies, Blast Furnace Production, and Iron and Steel Imports
Year Imports of Iron and Steel (Thousand Net Tons) Blast Furnace Production (Thousand Net Tons) U.S. Coke Supplya (Thousand Tons) U.S. Coke Production (Thousand Tons) U.S Coke Exports (Thousand Tons) U.S. Imports of Coke (Thousand Tons)
1991 20,237 48,637 24,442 24,046 787 1,183
1992 21,873 52,224 24,812 23,410 696 2,098
1993 25,644 53,082 24,275 23,182 1,062 2,155
1994 38,136 54,426 25,038 22,686 986 3,338
1995 33,244 56,097 25,941 23,479 1,358 3,820
1996 38,328 54,485 23,995 23,075 1,622 2,542
1997 41,048 54,679 23,989 22,116 1,266 3,139
1998 54,303 53,164 22,746 20,041 1,129 3,834
1999 49,346 51,002 22,342 20,016 898 3,224
2000 52,202 52,787 23,443 20,808 1,146 3,781
   a Coke supply equals domestic coke production, minus coke exports, plus coke imports.
   Source: American Iron and Steel Institute, Annual Statistical Report, and Energy Information Administration, Quarterly Coal Report.