Coal Prices Remain Constant in Week Ended September 8
There are three primary coal-producing regions in the United States; namely, the Powder River Basin (or PRB), the Illinois Basin (or ILB), and Appalachia. The PRB, which is located in Montana and Wyoming, is the largest coal-producing region in the United States. It represents almost half of the total coal output in the United States. It’s the lowest-cost thermal coal–producing region in the world.
The Illinois Basin, which is located in Ohio, Illinois, and Western Kentucky, produces high sulfur coal. The Appalachian region, the oldest coal-producing region in the country, is located in the Eastern United States. Among other coal-producing regions, the Appalachian region is usually the most affected by natural gas price movements.
PRB spot coal prices
During the week ended September 8, 2017, PRB spot coal prices closed at $11.50 per short ton, the same as the previous week’s price.
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Coal prices: Illinois Basin
Illinois Basin coal prices remained unchanged at $30.70 per short ton on a week-over-week basis.
Peabody Energy, Alliance Resource Partners (ARLP), and Natural Resources Partners (NRP) are major players that operate in the region. Southern Company (SO) and Tennessee Valley Authority are utilities (XLU) that use ILB coal.
Coal prices in the Appalachian region
During the week ended September 8, 2017, Central Appalachian coal prices came in at $53.25 per short ton, the same as the previous week.