(Reuters circulated the following on May 20.)
HOUSTON — Benchmark U.S. power plant coal futures crossed $110 a short ton on Tuesday, reaching new highs on persistent world demand, traders said.
Big Sandy-Ohio River barge coal on the New York Mercantile Exchange hit a bid-offer spread of $109.50/$110.50 Tuesday, up $2.50.
The NYMEX coal joined CSX Corp. Central Appalachian railroad coal, which moved up $2 to $113/$114 after passing $110 last Wednesday.
Prices have doubled levels of a year ago, led by delivered prices abroad as demand for U.S. steam coal has skyrocketed since last summer.
Economic growth in Asia has raised prices, attracting South African coal from Europe and making usually higher-cost U.S. coal competitive with European utilities.
Meanwhile, U.S. coal suitable for use in steel-making is in even greater demand in Brazil, Europe and Asia, and prices have tripled to more than $300 a ton in recent months.
U.S. coal mines produce more than 1.1 billion tons of coal a year, with most used domestically. This year, exports are expected to reach 80 million tons from 60 million last year.