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US coal prices fell to one year low as production rises

Bloomberg reported that US coal prices fell this week, touching a one year low in the east, as producers increased output at both eastern and western mines.

As per report, coal for delivery by barge on the Big Sandy River, a benchmark for Central Appalachian supplies, sank USD 7 or 10%, to USD 60.50 per tonne.

According to a report published by the US Energy Department earlier, production rose 5% last week to 22.8 million tonnes. Output east of the Mississippi River climbed to 9.4 million tonnes from 8.9 million tonnes a week earlier. In the west, production rose to 13.4 million tonnes from 12.8 million tonnes.

The Edison Electric Institute said that electricity production in the US increased 6.4% last week to 77.2 million MWh.

Meanwhile coal for delivery by Pennsylvania rail car dropped USD 15 or 17% to USD 72.50 per tonne. In Wyoming’s Powder River Basin, the price was unchanged at USD 13.50 per tonne.

Jan 19, 2009 12:00
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