February 22, 2018 Read More →

Mining Companies Across Biggest U.S. Coal Region See More Declines in Production

S&P Global Market Intelligence:

Top producers in the largest U.S. coal basin are guiding investors to further declines in coal volumes from the region in 2018.

Three coal companies responsible for producing about three-quarters of the coal that comes out of the Powder River Basin issued guidance that collectively would equal a 1% to 6% drop in production. Much of the decline is being forecast by Cloud Peak Energy Inc., which is guiding production lower by 2% to 9% compared to 2017. Arch Coal Inc. is guiding 2018 Powder River Basin shipments will be flat over prior-year production, while Peabody Energy Corp. is expecting shipments to range from flat to down 8% in 2018.

“[W]e aren’t aware of any [Powder River Basin] producer that is actually hiking production in 2018, and why would they given weak customer demand and challenged economics. In fact, we wouldn’t be surprised if other miners cut their production as well,” Seaport Global Securities LLC analyst Mark Levin wrote in a Feb. 19 note compiling the guidance ranges of Powder River Basin producers.

More ($): Miners in largest US coal basin signal production pullback in face of headwinds

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