Illinois Basin coal producers have seen higher pricing in term deals recently as a result of increased exports and tightening supply for 2017.
One producer Friday reported a deal at $42.50/st for low chlorine IB 11,800 Btu/lb, 4.8 lb SO2/MMBtu barge coal for the first half of 2017 to a utility in the US South.
"The days of $36-$38 coal are done," the source said. "Gas is up and the weather is getting cold."
Also heard in the market was a Cal 2017 deal at $41.75/st for 250,000-500,000 st of low chlorine IB 11,500 Btu/lb, 5 lb SO2/MMBtu barge coal at $41.75/st.
Larger longwall producers were heard selling a high volume of high chlorine coal into the export market.
An additional deal was heard at around $45/st for 11,800 Btu/lb high chlorine rail coal for Q1-Q2 2017. The spot deal was signed with a southern utility, a second IB producer said.
The producer predicted that coal would be scarcer in 2017 than earlier projected, due largely to increased exports and greater utility burn than expected.
"There's not as much coal out there," the producer said. "Utilities need more and above what they thought they needed."
S&P Global Platts Friday assessed Illinois Basin 11,800 Btu/lb, 5 lb SO2/MMBtu, low chlorine barge coal for Q1 2017 at $42.50/st, and assessed 11,500 Btu/lb, 5 lb SO2/MMBtu low chlorine barge coal at $41/st. Both assessments were up $1.50 from the previous weekly assessment, on November 23.
