Genscape said that coal supplies at US power plants this week shrank 0.14% WOW as shippers trimmed deliveries, but stockpiles were still 11.7% YoY greater than the same week of 2008.

Generators had 183.4 million tonnes of coal on hand as compared with 183.7 million tonnes and 164.2 million tonnes the same week last year. US generators had an average of 70 days' supply of coal, assuming typical burn rates. That is the same as last week's estimated coal capacity.

Genscape said that coal inventories typically grow in spring and fall when demand for heating and cooling drops, but the seasonal buildup this year has been slower than last year amid oversupply and weak power demand.

Stockpiles typically shrink during summer or winter, which tends to boost power consumption for air conditioning or heating, but this year's drawdown was weak, leaving coal stockpiles bulging. Coal mines have responded by cutting production and deliveries to try to get supply and demand back in balance.

Genscape has said that comparisons with last year became less meaningful after September because the economy weakened sharply in the autumn of 2008, reducing coal demand. Still, a shrinking year over year margin, it was 13.2% last week, 21% a month ago, shows miner supply cuts are having an effect

(Sourced from www.reuters.com)