Coal Supply & Demand Markets

Greenmont Energy Consulting offers unparalleled insights and expertise in the coal industry both from a markets and modeling perspective.  The current turbulence in the coal markets associated with factors such as supply/demand imbalance, expanding environmental regulations in the United States, a uncertain export market, ongoing railroad issues and aggressive supply from Australian and Indonesian suppliers in the seaborne coal trade puts an increased emphasis on the need for reliable and integrated forecasting methods.

With a combination of in depth knowledge and experience in the mining and utility industries as well as advanced proprietary simulation models, Greenmont Energy is uniquely positioned to assist clients with coal markets modeling and simulations including base case forecasts, “what if” scenarios, forward mine cost curves by coal type, and destination unit burn choice optimization being just some of the possibilities.

Most consulting firms will only forecast coal supply/demand dynamics at the basin or regional level, whereas we feel that due to the complexity of coal, both in terms of specs and transportation, it is crucial to capture every coal type available for delivery to the steam and metallurgical markets.  That is why our analytics incorporate over 100 unique coal types.

Our mine cost curves have been built up on a mine by mine basis and are updated and refreshed on an ongoing basis. This critical input for any coal supply/demand forecast is the product of internal expertise and insightful discussions with coal producing clients.  Additionally, our mine cost curves are periodically adjusted to reflect the prevailing coal economic environment and mine specific announcements made by producers.   This aspect is of particular importance today as coal producers struggle with weak demand and low prices domestically and increased competition globally and as a result have to gauge mine production on a case by case basis with a view to potential increased activity in the near term.

Greenmont Energy also models coal transportation issues including infrastructure disruptions impacts on coal deliveries and unit burn choices as well as waterway/lock and dam traffic flow.