Coal 1992

Overview In 1992, US coal supply and demand were shaped more by weather conditions and the export market than by the economic recovery. Preliminary data compiled by the Energy Information Administration (EIA) (Table I) show that coal production declined slightly to 902 Mt (994 million st). Consumption, though, rose by about 1 % to 811 Mt (894 million st), trailing the 2.1 %growth in Gross Domestic Product. Contributing to the decrease were a sizable drop in coal exports and some coal stock withdrawals. Consumption increased largely because electric utilities turned to coal to offset a shortfall in hydroelectric generation caused by a drought in the Northwest. Apart from this, the demand for coal-fired generation was dampened by a mild winter in the northwestern and northcentral United States, and a cool summer in the central and eastern parts of the Nation. Coal use by other consumers was about the same as in 1991. The average delivered prices of coal to all consuming sectors decreased slightly in 1992, reflecting soft coal markets (Fig. 1). US coal exporters experienced a set-back in 1992 mostly because of losses in the European market. Total coal exports fell by 6% to 93 Mt (103 million st), the first decline since 1987. Coal stockpiles at the end of 1992 were about 1.8 Mt (2 million st) below 1991, despite stock buildups by some electric utilities in the East. Stocks were built up as a hedge against possible coal miners' strikes after the Feb. 1, 1993, expiration of the contract between the United Mine Workers of America and the Bituminous Coal Operators' Association.