Central Appalachia weekly coal production surged to the highest level in over nine years, according to data released by the US Energy Information Administration Feb. 24.

The increased CAPP output encompasses both met and thermal coal and is due in part to global tension around the Russia/Ukraine situation, S&P Global Platts Analytics Coal & Power Markets Senior Analyst Wendy Schallom said. An increase in long-term coal prices for 2022 also contributed to the rise, she said.

“Europe may need replacement coal supplies,” Schallom said, if sanctions affect the roughly 5.6 million mt/month of coal movements through the Baltic states from Russia. She added that the replacement coal is not part of the Platts Analytics base case. “At this point I would attribute most of the current increase in production to the increased coal prices realized for 2022 rather than to the escalating tensions, although producers are definitely keeping their options open for further exports,” Schallom said.

US CAPP coal production was 2.8 million st in the week ended Feb. 19, the most productive week since 2.98 million st was produced in the week ended Jan. 12, 2013, according to EIA data. On an annualized basis, CAPP production was 110.27 million st, up 71.8% from full-year 2021 production. Year to date, CAPP coal production was 9.28 million st, up 3.7% on the year.

Total US coal production hit the highest level in over two years at 12.43 million st in the latest-reported week. It was the most productive week for US coal since since 12.49 million st was produced in the week ended Feb. 1, 2020. Total US weekly coal production rose 3.2% on the week and 38.9% on the year in the latest week. Annualized US coal production was 592.94 million st in week eight, up 0.6% from full-year 2021.

Powder River Basin production rose by the greatest week-on-week margin nationwide. PRB production was 5.52 million st, up 5.6% on the week and 46.5% on the year. Year-to-date PRB production was 36.35 million st, up 13.1% from the 2021 period. On an annualized basis, PRB production was 244.22 million st, down 7.1% from full-year 2021.

Week-on-week production rose by the greatest margin in Northern Appalachia after the PRB. NAPP production was 2.21 million st, up 4.2% on the week and 45.4% on the year. Year-to-date NAPP production was 14.57 million st, up 12.8% from the same period in 2021. Annualized NAPP production was 88.41 million st in the latest week, down 3.4% from full-year 2021 NAPP production figures.

Illinois Basin production rose to 1.69 million st in the latest week, up 0.4% on the week and 30.4% on the year. Year to date, IB production was 11.35 million st, up 2.9% from the year-ago period. Annualized IB production was 72.38 million st, down 3.8% from 2021 production.

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