Arch Coal Inc. (ACI:US) cut its forecast 2014 output of metallurgical coal by about 1 million tons while saying that demand for the commodity as an energy source is improving in the U.S.
Arch will now ship 6.3 million to 7.3 million tons of metallurgical coal, the St. Louis-based company said today in a statement. Market conditions for the raw material, which is used to make steel, will remain “soft” this year because of a global oversupply, it said.
“We are seeing a strengthening domestic thermal market in 2014, supported by improved power demand, depleting customer coal stockpiles, higher natural gas prices and low natural gas storage levels that will need to be rebuilt,” Chief Executive Officer John W. Eaves said in the statement.
To contact the reporter on this story: Sonja Elmquist in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com