North America coal long-term outlook H1 2017 - near-term rebound short lived
US coal demand declined to it's lowest level in 35 years in 2016 as natural gas prices plummeted in order to stimulate demand by displacing coal for electrical generation. Electric generating unit (EGU) operators of coal-fired units reduced consumption resulting in higher stockpiles and postponed or cancelled coal deliveries. Spot coal prices fell and fewer new coal contracts were signed. Wood Mackenzie projects that coal will continue to be challenged by natural gas over our forecast period, especially when our assumptions for carbon regulations are introduced in 2028.