U.S. to rejoin top coal exporters. Their only problem is squeezing enough coal through over-stretched ports and railroads.
U.S. to rejoin top coal exporters
Producers eye Asia's hungry markets
Reuters May 13, 2011
The United States could vault back into the top rank of coal exporters for good this year thanks to Asia's fuel demand -just as surging gas output and tougher environmental laws threaten mainstay domestic sales.
Leading U.S. producers, with wallets bulging from high world prices, are jostling to boost their Asian presence.
Their only problem is squeezing enough coal through over-stretched ports and railroads.
But efforts are under way to open new outlets, thanks to surging confidence in the sector.
"We see it as a structural change," said Deck Slone, chief spokesman for Arch Coal Inc., the second largest U.S. producer after Peabody Energy Corp.
Arch has agreed to buy International Coal Co. and has opened a Singaporebased subsidiary to boost its export presence.
Analysts say total U.S. coal exports could amount to around 91 million tonnes this year, leaving only Australia and Indonesia above it in the world export rankings, and putting it above Russia, Colombia and South Africa.
The economic boom in China and India has been the driver, but the developing world is also turning more to the U.S.to make up for supply shortfalls, particularly buyers who want very high energy-content fuel regardless of its high-sulphur content.
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