The Illinois Basin steam coal market continues to face domestic and international headwinds, as weak overseas prices and domestic electricity demand keep a cap on prices, sources said Friday.
"The export market is really dropping off," said a Tennessee-based broker. "It's high risk and low margins."
On the domestic side, the broker said Illinois Basin producers are ramping up production in order to pick up market share from Central Appalachian coal operations, where output is down, but softer electricity demand is hurting demand.
