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Regional Differences Color The North American Coal Pricing Picture May 07
Standard & Poors, May 2007
In recent years, North American coal prices have been volatile, but some regions are better than others in dealing with price swings. Although regional prices vary significantly depending on the characteristics of the coal produced, transportation costs, and contractual arrangements, volatility has cut across the industry. After a meteoric rise in 2005, these spot coal prices fell back to earth with a thud in 2006 and have, for the most part, remained at these lower levels thus far in 2007. In 2005, supply disruptions in Wyoming's Powder River Basin (PRB), coupled with strong demand for electricity and the high cost of competing energy sources--notably natural gas--boosted prices in all the coal producing areas in the U.S. As electric utilities scrambled...
Companies mentioned in this report are: Consol Energy Inc.,Peabody Energy Corp.,Arch Coal Inc.,Massey Energy Co.,James River Coal Co.,Alpha Natural Resources Inc.,International Coal Group LLC,PinnOak Resources LLC,National Coal Corp.
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Consol Energy Inc.,Peabody Energy Corp.,Arch Coal Inc.,Massey Energy Co.,James River Coal Co.,Alpha Natural Resources Inc.,International Coal Group LLC,PinnOak Resources LLC,National Coal Corp.