Market and product

Despite an uptick in summer coal burn, a majority of US generators are consuming less coal this year than they had forecasted, according to a National Coal Transportation Association survey.

During a meeting of the Surface Transportation Board's Rail Energy Transportation Advisory Committee on Thursday in Washington, committee co-Chairman Rob Hardman, vice president of coal supply at Dynegy, presented results of a survey conducted September 13 at the NCTA's annual business meeting and general conference.

The survey showed 79% of utilities said year-to-date coal burn was below their forecast, while 21% said coal burn was above forecast.

No utilities said generation this year was similar to their forecast. In the same survey last year, 71% of utilities said coal generation was below their forecast, and 29% said generation was similar to their forecast.Half of utility representatives surveyed said they are burning less coal this year compared to 2015, 25% said coal burn has been similar, and 25% said coal burn was above year-ago levels.

Data also showed coal inventories remain above year-ago levels. A total of 43% surveyed said stockpiles are above 70 days a burn, significantly up from 29% in last year's survey; and 21% of utilities said stockpiles were at 50-70 days, up from 18% last year.

Only 21% of utilities said current stockpiles are at 30-50 days, down from 35% last year, and just 14% said stockpiles were less than 30 days, down from 18% last year. - Platts