Coal Prices Remained Steady in the Week Ended October 13

Coal-producing regions

Three of the primary coal-mining (KOL) reserves in the United States are located in the Powder River Basin (or PRB), the Appalachian region, and the Illinois Basin.

PRB is located in Wyoming and Montana. It’s the world’s least expensive thermal coal–mining region as well as the largest coal-producing location in the United States. Powder River Basin represents nearly 50% of the coal produced in the US. Major players operating in this area are Peabody Energy (BTU) and Cloud Peak Energy (CLD).

Coal Prices Remained Steady in the Week Ended October 13

The Illinois Basin operates in western Kentucky, Illinois, and Ohio. This region produces coal with high sulfur content. Coal with low sulfur content is mined from the Appalachia region—the oldest coal-producing region in the United States.

Weekly coal spot prices

During the week ended October 13, 2017, the spot price for coal from all regions did not witness any change compared to prices in the week ended October 6. Powder River Basin coal closed at $11.75 per short ton, while the Illinois Basin spot coal price settled at $32.60 per short ton.

The spot price for Central Appalachian coal was reported at $55.50 per short ton, remaining constant compared to the week ended October 6, 2017. The coal mining methods in the Appalachian region are costly.

Most of the coal miners have shifted operations to the Illinois Basin region, which is less costly, to reduce their cost of operations. Natural Resource Partners (NRP), however, maintains significant coal reserves in the region. CNX Coal Resources (CNXC) also operates mine complexes in the Appalachian region.

You can drop by our Coal page for ongoing earnings reports.