Europe doesn’t want as much coal anymore, and that’s lowering U.S. exports, according to the U.S. Energy Information Administration.
Europe’s sudden, unexpected thirst for U.S. coal had been a boon to the industry in recent years. But that’s now dwindling and, coupled with greater competition from Australia and Indonesia, has pushed U.S. exports down 16 percent over the first six months of this year compared with the same period in 2013.
That is bad news for the U.S. coal industry, which has shifted its focus to exporting product that is getting edged out domestically by cheap natural gas and environmental regulations.
Exports of U.S. coal used for electricity to Europe dropped almost in half year-over-year, dropping from 16.2 million short tons to 8.8 million short tons. U.S. exports gained more market share in Asia the first six months of this year, but actually fell 2.4 percent in terms of volume compared with the same period in 2013.
Coal used to produce steel, which accounts for 56 percent of U.S. exports and a bulk of what Europe imports, also fell, the EIA said.
