US cutbacks in production?

In an earlier speech at Western Coal Council's Spring Coal Forum in Denver, Leer noted that overproduction in recent years has eroded coal prices and resulted in growing stockpiles. He said that Arch, Kannecott and Peabody are all currently moving to reduce production. Leer also believes the industry will see increased demand for coal this summer. Forecasts for a hot, dry summer in the US and great use of air conditioning have been accurate. As CoalTrans went to press, there were reports of possible cuts in the West as power plants struggles to meet demand. Dry weather limits the use of hydro, and equally Leer does not expect nuclear power to sustain its recent high level of output. US power generation is currently 4 per cent head from last year, and coal-fired power plan utilisation rates were approaching 70 per cent....