Metallurgical coal, primarily produced from the Illinois and Appalachian basins, remains the US’ great hope, as Europe and Asia have accounted for 80% of US exports in the first half of this year. Met coal represented less than 8% of production but 56% of total US coal exports last year.

The US Energy Information Administration noted in a report last week that US coal exports had continued to decline from their record volumes in 2012.

“During the first half of 2014, coal exports totalled 52.3 million short tons (MMst), 16% below the same period in 2013. Most of these exports go to countries in Europe and Asia,” the EIA said.

“Export declines reflect both lower European demand for steam coal and increased steam coal supply from Australia and Indonesia. Metallurgical coal supply from Australia, Canada, and Russia has also increased. These factors have led to a cumulative decline of 9MMst in coal exports to Europe and Asia during the first half of 2014.

“With relatively minor coal imports, the United States has been a net exporter of coal since 1949, the earliest year of data collection.”

The EIA said steam coal – which generally has lower heat content than metallurgical coal and could be found in most of the US’ coal-producing basins – accounted for more than 90% of domestic coal production in recent years.

Meanwhile, Europe received 8.8MMst of US steam coal exports in the first half of 2014, a drop of 7.4MMst from the same period last year. The EIA reported that Asia's share of US steam coal exports increased in 2014, but export tonnage to Asia decreased 2.4% from the first half of 2013.

Six US ports shipped 89% of US coal exports last year. Among them, eastern ports Baltimore and Norfolk represent 55%; and southern ports Houston, Mobile, and New Orleans make up 30%. Seattle accounted for 5MMst, or 4%, all of which was steam coal exports.

Eastern and southern ports are used to export metallurgical coal because it is produced in the Illinois and Appalachian Basins.