A steep drop in export coal prices shouldn't affect year-end volumes CSX expects to ship to eastern US ports, Chief Operating Officer Cindy Sanborn said Tuesday.
The railroad still anticipates total 2017 seaborne metallurgical and thermal tonnage hauled to fall in the mid- to upper 20 million st range, Sanborn said at the webcast Wolfe Research 10th annual Global Transportation Conference in New York.
Railroad damage in Australia caused by Cyclone Debbie sent US export met prices skyrocketing in mid-April. High-vol A prices increased to $295/mt but have steadily dropped since to $159/mt on Tuesday, back to where prices were before the spike. High-vol B prices have followed the same pattern, growing to $220/mt before slipping to $141/mt.
Sanborn left open the possibility of an impact to seaborne tons if there's "something very dramatic that happens in the export side" but added "met coal at $150/mt is not a risk to our full-year guidance."
CSX export volumes in the first quarter were up 50% year over year to 8.7 million st. Met volumes grew 23% to 5.3 million st and thermal volumes more than doubled, with a 127% increase to 3.4 million st.
