U.S. Coal Inventory GrowsTue Nov 24, 2009
HOUSTON (Reuters) - Coal stockpiles at U.S. power plants this week grew 1 percent from last week as shipments exceeded demand, and inventories were 11.9 percent greater than the same week of 2008, Genscape said Tuesday.
Generators had 185.3 million tons of coal on hand as of Tuesday, compared with 183.4 million tons last Tuesday and 165.5 million tons the same week last year, the power industry data provider said.
As of Tuesday, U.S. generators - who rely on coal for about half of U.S. electricity production - had an average of 71 days' supply of coal on hand assuming typical burn rates, Genscape said. That is one more than last week's estimated coal capacity.
Power companies as of Tuesday averaged eight more days' of coal stockpiled than the same week last year. That is one day more than last week's cushion over 2008 stockpiles, data showed.
Coal inventories typically grow in spring and fall when demand for heating and cooling drops, butthe seasonal buildup this year has been slower than last year as generators finished summer oversupplied and facing weak power demand, Genscape said.
Stockpiles typically shrink during summer or winter, which tend to boost power consumption for air-conditioning or heating, but this year's drawdown was weak due to milder weather and the economic recession.
Coal mines have responded by cutting production and deliveries to try to get supply and demand back in balance, with only partial success.
Mathematical rounding sometimes affects the results, overstating some changes and understating others, Genscape has said.
(Reporting by Bruce Nichols) https://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5AN3VW20091124