US coal production totaled 15.68 million st in the week that ended September 9, according to US Energy Information Administration data, a week-on-week fall of 4.5% that was likely the result of the long Labor Day weekend impacting operations.
In 2016, output fell 6.2% in the week of Labor Day before bouncing back 6.6% the following week. This year the public holiday came in week 36 -- rather than week 37 -- which likely accounts for the seasonal drop occurring a week earlier. The data would also suggest that production for the week ending September 16 will rebound on a year-on-year basis.
Despite the week-on-week decline, the annualized expectation for 2017 crept further upwards. Output is currently set to hit 791.82 million st, which would be an increase of 8.7% compared with the 2016 total.
The weekly impact on production was similar throughout the four major coal producing regions. In Wyoming and Montana, the main hub for Powder River Basin material, production in the week that ended September 9 was down 5.1% from the previous week at 7.4 million st, and down 3.3% from week 36 in 2016 as a result of the shift in Labor Day.
On an annualized basis, coal output in Wyoming and Montana would reach 355.9 million st, an increase of 7.9% on the 2016 total.
Central Appalachian weekly production fell 4.2% to 1.55 million st, but was still up 7.3% year on year even with the effects of reduced working hours. The annualized total is still set to increase 9.2% to 83.5 million st.
Northern Appalachia continues to be the strongest performing region on an annualized basis in line with the strength of pricing in the east coast export market. Weekly output slipped 3.8% to 2.25 million st, but was up 8.2% on the production achieved in week 36 in 2016. The annualized total for 2017 is set to hit 114.7 million st, a 12.6% increase over the 2016 figure.
Weekly production also fell in the Illinois Basin, sliding 3.7% to 2.06 million st. However, the annualized total is expected to jump 8.7% to 107 million st.
