Exports and Imports

Exports. Increased international demand for coal helped to push U.S. coal exports to levels not seen in over a decade. Total U.S. coal exports for 2008 were 81.5 million short tons, an increase of 22.4 million short tons over the 2007 level, or 37.8 percent (Figure 8). The large increase was in response to growing demand, predominantly from Europe and Asia for coal due to supply disruptions that affected the ability of other coal-exporting countries to ship their product. Heavy rains in the beginning of the year caused production problems for Australia while increased domestic demand for coal in South Africa, Indonesia, Vietnam, and Russia cut into their available tonnage for the world markets. The increasing demand for U.S. coal also resulted in increasing coal export prices. The average price of U.S. coal exports in 2008 was $97.68 per short ton, an increase of 39.0 percent.

Figure 8. U.S. Coal Export and Imports, 1999-2008

Metallurgical coal exports increased in 2008 to end the year at 42.5 million short tons, an increase of 32.2 percent as the world metallurgical coal market tightened due to increasing world demand combined with production and transportation issues experienced during the year in other metallurgical coal exporting countries. With tightened world-wide demand, the result was a huge increase in metallurgical coal export prices. In 2008, the average price of U.S. metallurgical coal exports rose by 51.3 percent to a level of $134.62 per short ton, an increase of $43.63 per short ton over the 2007 level. In part, as a consequence of the increasing demand for metallurgical coal, several of the international steel companies purchased U.S. metallurgical coal producing companies during 2008.

As it has traditionally been in the past, Europe is the main destination of U.S. metallurgical coal and in 2008 accounted for almost 60 percent of the total metallurgical coal exports. Europe was the destination for 25.5 million short tons in 2008, an increase of 38.8 percent from 2007. In 2008, the Netherlands was the primary destination of U.S. metallurgical coal exports with a total of 3.4 million short tons, an increase of 1.3 million short tons. (Note: Some ports in the Netherlands serve as transshipment points for coal being sent to other countries and the coal exports shipped there may move to other destinations.) The average price per short ton to the Netherlands increased 37.3 percent in 2008, from $85.78 to $117.81. Italy, France, and the United Kingdom were also major European destinations of U.S. metallurgical coal in 2008. Italy received a total of 2.9 million short tons, 15.1 percent less than the 2007 total, while the average price of metallurgical coal exports to Italy was up from $94.65 per short ton to $110.27 per short ton in 2008. Both France and the United Kingdom each received 2.1 million short tons of U.S. metallurgical coal in 2008; that total was an increase of 19.0 percent for France and an increase of 23.0 percent for the United Kingdom. The percentage increases in the average price per short ton of those metallurgical coal exports were 31.2 and 34.2 percent respectively, with the average price per short ton for metallurgical coal to France at $114.74 and the price for the United Kingdom at $121.01 in 2008. Other major European destinations for U.S. metallurgical coal in 2008 were Turkey, Belgium, Poland, Romania, Croatia, Spain and Germany, with each receiving over 1 million short tons of coal. The average price of metallurgical coal exports to these major destinations ranged from $110.40 per short ton in Germany to $203.69 per short ton in Turkey.

Total U.S. metallurgical coal exports to countries in North America increased in 2008, while shipments to South America decreased, with the primary destinations being Canada and Brazil. Canada received 3.6 million short tons of metallurgical coal from the U.S., a slight decrease of 1.0 percent over the 2007 level, while shipments to Brazil totaled 6.0 million short tons, a decline of 6.1 percent. The average price of metallurgical coal in 2008 increased to both countries with the price to Canada at $91.00 per short ton, while the price to Brazil was $143.40 per short ton, representing increases of 18.2 and 62.4 percent respectively.

The Asian market accounted for almost 10 percent of U.S. metallurgical coal exports in 2008. Total metallurgical coal exports to Asia totaled 4.2 million short tons in 2008, an increase of 311.2 percent from 2007, as the U.S. helped to meet the gap in supply due to the production problems in Australia. India was the major Asian destination of U.S. coal exports in 2008, with a total of 1.6 million short tons, an increase of 79.9 percent. Japan, which did not receive any U.S. metallurgical coal exports in 2007, was also a major Asian destination in 2008, with a total of 1.4 million short tons. South Korea received 1.1 million short tons in 2008, almost 650 percent higher than the 143 thousand short tons it received in 2007. The average price for U.S. metallurgical coal exports to India was $217.77 per short ton, an increase of $115.10 per short ton. The average price for metallurgical coal exports to Japan was $142.96 per short ton while the price to South Korea rose considerably in 2008 by $92.36 per short ton to $165.62.

Metallurgical coal exports to countries in Africa decreased somewhat in 2008 from 2.1 million short tons to 2.0 million short tons. The majority of the metallurgical coal exports to Africa went to Egypt. Total U.S. metallurgical coal exports to Egypt in 2008 were 1.4 million short tons with an average price of $209.49 per short ton, an increase in price of 130.9 percent from 2007.

Total U.S. steam coal exports increased in 2008 for the sixth consecutive year as the tight world market drove many users to the U.S. for their steam coal needs. In 2008, steam coal exports rose by 44.5 percent to a level of 39.0 million short tons, while the average price per ton increased by 19.7 percent to $57.35 per short ton. Canada is the single largest market for all U.S. coal exports as well as the primary North American destination of steam coal exports. In 2008, Canada received 19.4 million short tons of steam coal exports, an increase of 4.6 million short tons and accounted for 49.7 percent of all of 2008 steam coal exports. The average price of steam coal exports to Canada decreased by $4.63 in 2008 to $36.00 per short ton. (Note: The steam coal exports to Canada contain some tonnage of U.S. steam coal exports to countries in Asia. This is due to the fact that there are currently no major coal-exporting facilities on the U.S. west coast. Some coal producers shipped steam coal by rail to coal-export terminals in British Columbia that were then loaded to ships for further transport to Asian buyers.)

Europe is the second largest market for U.S. steam coal exports due to the declining coal production in many of the countries combined with the proximity of the major eastern U.S. coal ports. Total steam coal exports to Europe increased in 2008 to a total of 14.8 million short tons, an increase of 69.2 percent from 2007. The average price of steam coal to Europe rose in 2008 by 25.3 percent, increasing to a level of $74.93 per short ton. One-third of the increase in U.S. steam coal exports to Europe was accounted for by one country: the United Kingdom. Total U.S. steam coal exports to the U.K. in 2008 were 3.7 million short tons, an increase of 119.4 percent. The average price of steam coal exports to the U.K. in 2008 was $62.53 per short ton, an increase of 33.5 percent from 2007. Other major European destinations for U.S. steam coal were: the Netherlands, Germany, France, Belgium, and Spain. The respective amount of steam coal exports in 2008 were: 3.6 million short tons, 1.4 million short tons, 1.4 million short tons, 1.3 million short tons, and 1.1 million short tons, while the average price per short ton was: $71.77, $75.23, $92.93, $85.35, and $65.56. These steam coal export prices represent increases that range from a low of $7.95 per short ton (the Netherlands) to a high of $25.41 (Belgium).

U.S. steam coal exports to the African continent declined by 22.2 percent in 2008, to a total of 1.9 million short tons. The majority of the decrease in steam coal exports to Africa is attributable to one country, Morocco. Total steam coal exports to Morocco in 2008 were 1.7 million short tons, down by 28.2 percent. The average price of steam coal exports to Morocco in 2008 was $84.15 per short ton, an increase of 77.8 percent from 2007.

Although the total amount of steam coal exports to South America (the primary source of coal imports for the U.S.) increased dramatically in 2008 to a total of 1.3 million short tons, it still only accounted for 3.2 percent of all U.S. steam coal exports. The majority of the South American steam coal exports went to Chile with a total of 854 thousand short tons. The average price of steam coal exports to South America increased to $74.40 per short ton from the 2007 level of $50.87 per short ton, while the average price to Chile increased to $47.93 per short ton from $38.42 per short ton.

Steam coal exports to Asia in 2008 were 1.1 million short tons, a level not seen since 2005, and an increase of 496.5 percent from 2007. Japan was the primary Asian destination of U.S. steam coal exports in 2008 with a total of 337 thousand short tons, well above the 5 thousand short tons it received in 2007. The average price of U.S. steam coal exports to Japan was $129.67 per short ton, a decrease from the $175.33 per short ton level of 2007. The two other primary Asian destinations of U.S. steam coal exports were South Korea and China, with totals of 281 thousand short tons and 242 thousand short tons respectively. The average price per short ton for South Korea in 2008 was $63.03 per short ton and for China was $122.93 per short ton.

U.S. coke exports increased in 2008 by 35.7 percent to a total of 2.0 million short tons. Most of the coke exports went to Canada which accounted for 38.7 percent of all U. S. coke exports with 758 thousand short tons. The average price of coke exports in 2008 was $107.42 per short ton, an increase of 18.4 percent over 2007.

Imports. U.S. coal imports declined in 2008 for the first time in six years. Total coal imports were 34.2 million short tons, a decrease of 5.9 percent, or 2.1 million short tons. Coal imports represent a small portion of the domestic coal consumption, averaging about 3 percent of total U.S. coal consumption. The average price of imported coal rose significantly, by 25.6 percent, to a level of $59.83 per short ton. Colombia, which dominates the U.S. coal import market, accounted for over three-fourths of all 2008 coal imports. The U.S. imported 26.3 million short tons of coal from Colombia in 2008, a drop of 0.6 million short tons, or 2.2 percent. The average price of Colombian coal into the U.S. was $57.01 per short ton, an increase of 23.1 percent over 2007. In 2008, total coal imports from Indonesia, the second largest supplier of coal imports, were 3.4 million short tons, a slight decrease of 0.3 million short tons, while the average price increased by 44.4 percent to $37.68 per ton. Coal imports from Venezuela declined by 32.5 percent to 2.3 million short tons, while the price of the coal imports increased by 38.9 percent. Canada was another major source of U.S. coal imports in 2008 with a total of 2.0 million short tons, unchanged from the 2007 total. These four countries accounted for over 99 percent of total U.S. coal imports, the same rate as in 2007. Although most coal imports are used for electric generation, metallurgical coal imports were 1.7 million short tons in 2008, all from Canada.

U.S. coke imports increased substantially in 2008 by 46.5 percent to end the year at 3.6 million short tons. Increases in shipments of coke from China of 1.3 million short tons in 2008 accounted for most of the increase in coke imports. Due to the tight world metallurgical coal market during most of 2008, the average price of U.S. coke imports rose dramatically by 139.2 percent to a level of $465.15 per short ton.