Fed survey shows flat Northen App coal output

OREANDA-NEWS. June 08, 2015. The Federal Reserve's latest survey of business activity points to flat coal production in April-May in parts of the Northern Appalachian basin while output continues to fall in Central Appalachia and the Illinois basin.

There was little change in the Fed's Cleveland district coal production while steam and metallurgical coal prices declined in the past two months, according to the Beige Book survey released yesterday. The Cleveland district includes western Pennsylvania, Ohio and eastern Kentucky.

The pace of coal output declines has slowed in northern West Virginia, which is part of the Northern App basin. But output in the rest of the Richmond district, with its Central App mines, is declining.

Coal production in the St. Louis district in April was 7.4pc lower year over year. Year-to-date production is down by 5.7pc from January-May 2014 in that district, which incorporates most of the Illinois basin coal output.

Overall production in Central and Northern Appalachia in January-March fell by 12pc and 4.1pc, respectively, from the first quarter of 2014, according to Mine Safety and Health Administration data.

The Beige Book showed falling activity in the oil and natural gas extraction industries across the US. Employment has declined in West Virginia's coal and gas industries.

But the survey suggests overall economic activity has expanded in the US despite declines in the fossil fuel extraction industries.