Washington (Platts)--14May2007

US coal production totaled 21.4 million short tons in the week ended May 5,
flat with the previous week but down 5% from the year-ago period, the Energy
Information Administration said Friday.

Not surprisingly, the Appalachian coalfields led the downward trend, showing
the realization of coal companies' commitments to cut production in response
to the weak market of the last-half of 2006 and into the first quarter of this
year (CO 5/14).

Appalachia continued its downward trend, producing 7.1 million st in the week,
down from the year-ago week of 7.9 million st. Year-to-date production is down
8.2% to 131 million st and the 52-week total is down 5%, from 398.7 million st
in 2006 to 378.7 million st in 2007. 

Central App producers have said they would reduce production to adjust for
what they consider an oversupply. During earnings reports earlier this month,
executives of the public companies said they believe lower prices, oversupply
and high stockpiles at utilities are keeping the market depressed. All said
they expected a market turnaround later this year. But in the meantime, they
will be pulling back on production, and all said they would not be selling
coal if the margins were too narrow. 

A warm or cool summer will have a strong effect on the market, some said. 

In the EIA's interior region, production for the week was 2.8 million st,
almost flat with the year-ago week's sum of 2.9 million st. For the year to
date, 2007's production is down 2.6% from the 2006 total. For the 52-week
period, production is basically flat ? up 0.2% ? to 150 million st in the 2007
period. 

In the western area, the largest producing region remains so, and over the
long term, it continues to grow. For the 52-week sum, 2007's total is 621
million st, up 5.7% from 587.4 million st in 2006. The 2007 week was the
exception, however, with production reaching 11.5 million st, down from the
comparable 2006 week, when production was 11.8 million st. Year-to-date totals
reveal 211.6 million st in the 2007 period, up 1.3% from the 208.8 million st
in the 2006 time. 

Production east of the Mississippi River totaled 9 million st, and production
west of the Mississippi totaled 12.4 million st, it said. 

Coal production in April 2007 totaled 92.3 million st, some 3% lower than
April 2006 output, EIA said.