North America coal short-term outlook January 2017: Warmer weather dampens market upside
Demand for coal will trend 8% higher in 2017 as the market bounces back from 2016 multi-year lows. However, further upside from that forecast appears limited as weather has been trending warmer than normal this winter. International coal prices will continue to fall in the coming months. However, the international market lately has shown a decreasing influence on US domestic coal markets. On 11 January 2017, the United States Bureau of Land Management – under the previous administration - issued its "Comprehensive Roadmap to Reform Federal Coal Program." The BLM's high-level suggestions include increases in the royalty rate, requiring higher bonus payments or charging the estimated social cost of global warming emissions for coal from public lands. The BLM is still focusing on balancing higher disparate goals of increasing revenue from publicly owned coal or accounting for greenhouse gas emissions which would likely end coal mining from public lands.