U.S. Energy Information Administration/Quarterly Coal Report October - December 2010 1

Executive Summary 
2 U.S. Energy Information Administration/Quarterly Coal Report October - December 2010 

Summary 

The U.S. coal industry has begun to recover from the 

2009 economic recession. While decreases in production 

and consumption from third quarter 2010 may suggest 

otherwise, these decreases are normal for this time of 

year due to the cyclical nature of U.S. demand. In fact, 

decreased production was as much a result of high 

consumer stock levels as it was a reflection of reduced 

demand due to mild weather. Metallurgical coal exports 

remained high. 

Production 

In fourth quarter 2010, coal production decreased by 0.6 

percent to 276.6 million short tons (mst) from third 

quarter 2010. The decrease was due to lower demand by 

electric utilities, which was not offset by high exports. 

Nevertheless, production during fourth quarter 2010 was 

6.5 percent higher than production during fourth quarter 

2009, which was the lowest in 14 years. 

Source: Form EIA-7A, "Coal Production and Preparation Report."

Production in the Western Region of U.S., 152.1 mst, 

decreased slightly (0.7 percent) from third quarter 2010. 

Conversely, it increased significantly (6.5 percent) from 

fourth quarter 2009. Fourth quarter production in 

Wyoming, in particular, decreased by 1.0 percent to 

114.6 mst from the preceding quarter, while showing an 

increase of 8.4 percent from the same quarter in 2009. 

Producers in this region, however, have limited access to 

foreign markets due to the lack of coal export facilities 

on the West Coast. 

Fourth quarter production in the Appalachian Region 

increased by 0.6 percent to 83.4 mst from the preceding 

quarter and was 3.0 percent higher than the same quarter 

in 2009. While demand from foreign nations, namely 

China and India, had a positive impact on production, the 

rising costs of mining due to new safety regulations, a 

shortage of skilled labor, and a slowdown of permits for 

surface mining operations limited production growth in 

this region. 

Production in the Interior Region decreased from third 

quarter 2010, falling 1.9 percent to 40.4 mst, but 

increased by 14.3 percent from the same quarter in 2009. 

Clearly, production constraints in the Appalachian 

Region have affected the price of coal from the region 

and caused a shift in demand from the Appalachian 

Region to the Illinois Basin in the Interior Region and to 

the Western Region since fourth quarter 2009. 

Exports and Imports 

Total coal exports decreased by 1.0 percent to 20.9 mst 

from third quarter 2010, but increased by 18.2 percent 

from the same quarter in 2009. Export demand grew in 

2010 due to heavy rains and flooding, which disrupted 

mining and the transportation of coal in Australia, 

Indonesia, and Colombia.

Higher exports were driven primarily by demand for 

metallurgical coal by China. Total exports to China 

accounted for 8.3 percent of total U.S. coal exports, an 

increase of 4.0 percentage points from the same quarter 

in 2009. Accelerated exports to China prompted other 

Asian nations to purchase coal to increase their 

stockpiles. 

Source: Exports: Bureau of the Census, U.S. Department of Commerce, 

"Monthly Report EM 545;" and Imports: Bureau of the Census, U.S. 

Department of Commerce, "Monthly Report IM 145." 

Metallurgical coal exports increased to 13.3 mst, 

reflecting an increase of 1.8 percent and 11.8 percent 

from the preceding quarter and the same quarter in 2009, 

respectively. Fourth quarter exports to China totaled an 
U.S. Energy Information Administration/Quarterly Coal Report October - December 2010 3

estimated 1.5 mst, an increase of 0.8 mst from the same 

period in 2009. 

Steam coal exports were 5.4 percent less than the third 

quarter 2010 but 31.5 percent greater than the same 

quarter in 2009. U.S. steam coal exports to South Korea, 

China, and India grew exponentially while exports to the 

U.K. declined by 23.6 percent from the same quarter in 

2009. 

Source: Bureau of the Census, U.S. Department of Commerce, "Monthly 

Report EM 545.” 

The U.S. imported 4.8 mst of coal during the fourth 

quarter, which was an increase of 2.8 percent from third 

quarter 2010. However, imports were 11.7 percent less 

than in the fourth quarter of the previous year and 47.3 

percent below fourth quarter 2008. 

Consumption 

Total U.S. coal consumption decreased from third 

quarter 2010 and from the same quarter in 2009 by 12.6 

and 0.9 percent, respectively. Consumption was the 

lowest since the same quarter in 1995. While Industrial 

Sector users increased consumption from the same 

quarter in 2009 and third quarter 2010, coke plants 

utilized less coal in comparison to the third quarter 2010 

and higher volumes of coal in comparison to the same 

quarter in 2009. Increases in consumption from fourth 

quarter 2009 reflect some recovery from the 2009 

recession. 

Commercial and Institutional Users, however, increased 

coal consumption from third quarter 2010, but reduced 

consumption from the same quarter in 2009. 

Consumption by these users is affected by weather 

patterns. Hence, the decrease in consumption from 

fourth quarter 2009 is the consequence of milder weather 

in fourth quarter 2010 relative the weather in fourth 

quarter 2009. 

The Electric Power Sector has been and continues to be 

the largest consumer of U.S. coal. Accounting for 92.6 

percent of U.S. coal consumed, Electric Power Sector 

consumption in last quarter 2010 decreased by 13.5 

percent from third quarter 2010 and by 1.8 percent from 

the same quarter in the previous year. Weather patterns 

play a major role in electricity consumption and as a 

result affect coal consumption by the Electric Power 

Sector. Therefore, milder weather in fourth quarter 2010 

relative the weather in fourth quarter 2009 caused a 

decrease in consumption relative to fourth quarter 2009. 

Third quarter months, July, August and September, are 

traditionally the warmest months of the year. During 

these months, the frequent use of air conditioners result 

in high consumption of electricity while the cooler 

months of October and November require less air 

conditioning and less heating relative to the colder 

months of January and February. 

Average U.S. temperatures, October - December 2010

Source: National Oceanic and Atmospheric Administration, 

“Divisional Temperature Ranks.” 

Domestic Prices 

The average price of coal delivered to the electric power 

sector increased by 4.2 percent from December 31, 2009 

to $2.22 per million Btu on December 31, 2010. The 

average quarterly price of $2.24 per million Btu during 

fourth quarter 2010 represented an increase relative to 

the average quarterly price of fourth quarter 2009 when it 

was $2.14 per million Btu. Delivered prices are the 

weighted average of contract and spot prices. According 

to EIA estimates, 80 percent of coal is delivered under 

contract terms and 20 percent is delivered under spot 

terms. For more information on spot and delivered price 

data, see Table 4.10.A in the Electric Power Monthly at 
4 U.S. Energy Information Administration/Quarterly Coal Report October - December 2010 

www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html

and http://www.eia.gov/FTPROOT/features/uscoal.pdf. 

Historical average weekly coal commodity spot prices 

(2008 Q4 – 2010 Q4) 

Source: With permission, Platts Coal Outlook, “Weekly Price Survey.” For more 

information, see www.eia.doe.gov/cneaf/coal/page/coalnews/coalmar.html. 

Stocks 

Consumer stocks increased to 182.2 mst from 169.7 mst 

in third quarter 2010. While last quarter 2010 stocks 

were an estimated 7.6 percent below last quarter 2009 

stocks, they are well above the 5-year average of 157.2 

mst for the same period. It appears that stock levels in 

the Electric Power and Industrial sectors have begun to 

return to pre-recession levels. Stocks held by coke plants 

have remained consistent with levels reported in previous 

years for the same quarter.
U.S. Energy Information Administration/Quarterly Coal Report October - December 2010 5

Table ES-1. U.S. Coal Summary Statistics, 2004-2010 

 (Thousand Short Tons)

Year and 

Quarter Production1

 Imports Waste Coal 

Supplied 

Producer and 

Distributor 

Stocks2

Consumption Exports Consumer 

Stocks2

Losses and 

Unaccounted 

For3

2004 

 January - March ............................ 275,492 5,326 2,620 39,305 276,117 9,688 118,317

 April - June ................................... 274,335 6,853 2,320 40,698 260,315 15,255 125,893

 July - September ........................... 281,484 7,804 2,441 39,425 292,531 12,203 112,263

 October - December ..................... 280,787 7,297 3,919 41,151 278,292 10,852 112,855

 Total ............................................. 1,112,099 27,280 11,299 1,107,255 47,998 6,887

2005 

 January - March ............................ 285,802 7,607 3,208 38,698 278,274 10,129 111,577

 April - June ................................... 278,793 7,233 3,090 38,422 263,732 14,803 123,005

 July - September ........................... 285,293 7,832 3,828 34,965 303,668 12,620 106,191

 October - December ..................... 281,610 7,788 3,227 34,971 280,303 12,390 109,333

 Total ............................................. 1,131,498 30,460 13,352 1,125,978 49,942 9,092

2006 

 January - March ............................ 289,145 8,958 3,613 35,113 272,730 10,659 120,013

 April - June ................................... 292,416 7,956 3,363 35,307 261,207 12,590 144,228

 July - September ........................... 289,792 10,399 3,787 33,170 300,677 13,540 135,782

 October - December ..................... 291,397 8,933 3,646 36,548 277,677 12,858 150,398

 Total ............................................. 1,162,750 36,246 14,409 1,112,292 49,647 8,824

2007 

 January - March ............................ 286,041 8,786 3,264 34,007 278,727 11,139 149,588

 April - June ................................... 285,687 8,405 3,387 32,484 267,106 14,702 162,849

 July - September ........................... 286,035 10,559 3,697 30,090 303,665 16,198 150,448

 October - December ..................... 288,872 8,597 3,727 33,977 278,500 17,124 158,781

 Total ............................................. 1,146,635 36,347 14,076 1,127,998 59,163 4,085

2008 

 January - March ............................ 289,015 7,640 3,453 34,876 284,984 15,802 153,225

 April - June ................................... 284,331 8,982 3,420 32,086 267,304 23,069 159,760

 July - September ........................... 298,911 8,485 3,672 31,354 299,022 20,321 151,596

 October - December ..................... 299,552 9,101 3,601 34,688 269,237 22,329 170,424

 Total ............................................. 1,171,809 34,208 14,146 1,120,548 81,519 5,740

2009 

 January - March ............................ 282,772 6,325 3,321 41,257 254,383 13,335 182,169

 April - June ................................... 263,017 5,426 3,220 44,018 231,110 12,951 202,994

 July - September ........................... 269,339 5,441 3,567 41,690 259,621 15,159 204,422

 October - December ..................... 259,796 5,447 3,558 47,718 252,363 17,653 197,062

 Total ............................................. 1,074,923 22,639 13,666 997,478 59,097 14,985

2010 

 January - March ............................ 265,317 4,803 3,269 50,153E 264,581 17,807 183,977

 April - June ................................... 265,132 5,058 3,443 48,667E 247,418 21,965 187,810

 July - September ........................... 278,205 4,680 3,721 42,430E 286,149 21,074 169,696

 October - December ..................... 276,627 4,811 3,429 42,151E 250,147 20,870 182,164

 Total ............................................. 1  ,085,281 19,353 13,862 1,048,295 81,716 8,950

1

 Includes refuse recovery. 

2

 Reported as of the last day of the quarter. 

3

 "Losses and Unaccounted For" is calculated as production plus imports plus waste coal supplied minus the change in producer and distributor stocks minus consumption 

minus exports minus the change in consumer stocks. E

 Estimated 

 Note:  Total may not equal sum of components because of independent rounding. Beginning with 1999, the first three quarters of Producer and Distributor Stocks data for 

each year are estimated. 

 Sources:  Production: All Years and Quarters - Mine Safety and Health Administration, U.S. Department of Labor, Form 7000-2, "Quarterly Mine Employment and Coal 

Production Report"  Imports: All Years and Quarters - Bureau of the Census, U.S. Department of Commerce, "Monthly Report IM 145"  Waste Coal Supplied: 2004-2007 - 

U.S. Energy Information Administration (EIA), Form EIA-906, "Power Plant Report," Form EIA-920, "Combined Heat and Power Plant Report," and Form EIA-3, "Quarterly 

Coal Consumption and Quality Report - Manufacturing and Transformation/Processing Coal Plants and Commercial and Institutional Coal Users;" 2008-Forward, Form EIA923, "Power Plant Operations Report," and Form EIA-3, "Quarterly Coal Consumption and Quality Report - Manufacturing and Transformation/Processing Coal Plants and 

Commercial and Institutional Users"  Producer and Distributor Stocks: 2004-2007 - "Short-Term Energy Outlook" estimates and Form EIA-6A, "Coal Distribution Report;" 

2008-Forward - "Short-Term Energy Outlook" estimates, Form EIA-7A, "Coal Production Report," and Form EIA-8A, "Coal Stocks Report"  Exports: All Years and Quarters 

- Bureau of the Census, U.S. Department of Commerce, "Monthly Report EM 545"  Consumption: 2004-2007 - EIA, Form EIA-906, "Power Plant Report," and Form EIA920, "Combined Heat and Power Plant Report; Form EIA-3, "Quarterly Coal Consumption and Quality Report - Manufacturing and Transformation/Processing Coal Plants and 

Commercial and Institutional Coal Users," Form EIA-5, "Quarterly Coal Consumption and Quality Report - Coke Plants," Form EIA-7A, "Coal Production Report," and Form 

EIA-6A, "Coal Distribution Report;" 2008-Forward - Form EIA-923, "Power Plant Operations Report," Form EIA-3, "Quarterly Coal Consumption and Quality Report - 

Manufacturing and Transformation/Processing Coal Plants and Commercial and Institutional Coal Users," Form EIA-5, "Quarterly Coal Consumption and Quality Report - 

Coke Plants," and Form EIA-7A, "Coal Production Report."  Consumer Stocks: 2004-2007 - EIA, Form EIA-906, "Power Plant Report," Form EIA-920, "Combined Heat and 

Power Plant Report;" Form EIA-3, "Quarterly Coal Consumption and Quality Report - Manufacturing and Transformation/Processing Coal Plants and Commercial and 

Institutional Coal Users," and Form EIA-5, "Quarterly Coal Consumption and Quality Report - Coke Plants;" 2008-Forward - Form EIA-923, "Power Plant Operations Report," 

Form EIA-3, "Quarterly Coal Consumption and Quality Report - Manufacturing and Transformation/Processing Coal Plants and Commercial and Institutional Coal Users," and 

Form EIA-5, "Quarterly Coal Consumption and Quality Report - Coke Plants." 
6 U.S. Energy Information Administration/Quarterly Coal Report October - December 2010 

Table ES-2. U.S. Coke Summary Statistics, 2004-2010 

 (Thousand Short Tons)

Year and 

Quarter Production Imports 

Producer and 

Distributor 

Stocks1

Consumption2

 Exports 

2004 

 January - March ................................. 4,185 1,006 349 5,137 86

 April - June ........................................ 4,224 3,628 320 7,518 363

 July - September ................................ 4,241 1,043 317 4,825 462

 October - December .......................... 4,258 1,196 351 5,012 408

 Total .................................................. 16,909 6,873 22,492 1,319

2005 

 January - March ................................. 3,959 1,608 393 5,236 288

 April - June ........................................ 4,338 974 662 4,562 481

 July - September ................................ 4,291 441 784 4,127 483

 October - December .......................... 4,132 507 614 4,314 495

 Total .................................................. 16,719 3,529 18,239 1,747

2006 

 January - March ................................. 4,115 675 470 4,755 178

 April - June ........................................ 4,102 939 419 4,664 427

 July - September ................................ 4,128 1,402 495 4,825 629

 October - December .......................... 4,059 1,052 685 4,539 383

 Total .................................................. 16,404 4,068 18,784 1,616

2007 

 January - March ................................. 4,000 454 717 4,078 343

 April - June ........................................ 4,083 685 767 4,428 291

 July - September ................................ 4,063 521 637 4,371 344

 October - December .......................... 4,055 800 632 4,394 466

 Total .................................................. 16,201 2,460 17,270 1,444

2008 

 January - March ................................. 4,036 850 478 4,723 316

 April - June ........................................ 3,810 1,243 505 4,559 466

 July - September ................................ 4,107 998 464 4,494 653

 October - December .......................... 3,694 512 916 3,229 524

 Total .................................................. 15,646 3,603 17,006 1,959

2009 

 January - March ................................. 3,147 67 1,563 2,332 235

 April - June ........................................ 2,387 79 1,731 1,989 309

 July - September ................................ 2,679 71 1,189 2,941 351

 October - December .......................... 2,930 130 776 3,061 411

 Total .................................................. 11,143 347 10,323 1,307

2010 

 January - March ................................. 3,433 365 702 3,588 285

 April - June ........................................ 3,810 448 629 4,029 300

 July - September ................................ 3,971 330 721 3,920 290

 October - December .......................... 3,808 71 702 3,310 587

 Total .................................................. 15  ,022 1,214 14,847 1,463

1

 Reported as of the last day of the quarter. 

2

 Consumption is equal to production plus imports minus the change in producer and distributor stocks minus exports. 

 Note:  Total may not equal sum of components because of independent rounding. 

 Sources:  Production, Consumption, and Producer and Distributor Stocks: U.S. Energy Information Administration (EIA), Form EIA-5, "Quarterly Coal Consumption and 

Quality Report - Coke Plants"  Imports: Bureau of the Census, U.S. Department of Commerce, "Monthly Report IM 145"  Exports: Bureau of the Census, U.S. Department 

of Commerce, "Monthly Report EM 545."