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PRB and Central Appalachian Coal Prices Fall Marginally


Apr. 10 2015, Published 1:22 p.m. ET

Powder River Basin

The PRB (Powder River Basin) is located in Wyoming and Montana. It’s the largest coal-producing region in the US. It produces almost half of the total coal output in the US. The PRB is also the lowest-cost thermal coal-producing region in the world.

Peabody Energy (BTU), Arch Coal (ACI), and Cloud Peak Energy (CLD) are major coal producers (KOL) that operate in the region.

PRB coal spot prices averaged $10.30 per ton for the week ending April 3—down from $10.40 the previous week. PRB coal prices remained under pressure throughout the winter due to low natural gas prices.

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Illinois Basin

The ILB (Illinois Basin) is located in Illinois, Ohio, and western Kentucky. The region produces high sulfur coal. In recent years, ILB coal became competitive against coal from the neighboring Appalachian region. Most power plants installed scrubbers to soak sulfur. Sulfur causes acid rain. Peabody Energy and Alliance Resource Partners (ARLP) are major players that operate in the region.

The ILB coal spot price remained at $40.30 per ton for the last six weeks.


The Appalachian region is located in the eastern US. It’s the oldest coal-producing region in the US. The Appalachian region is affected the most by natural gas price movements. However, since production in the region is already cut down, prices showed a reduced correlation with natural gas prices.

Central Appalachian thermal coal prices came in at $51.20 per ton for the week ending April 3—down from $52.40 per ton the previous week. Northern Appalachian coal prices remained stable at $61.20 per ton.


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