Study of coal prices. [USA; 1948 to 1969; 1969 to 1974]

Technical Report · Mon Mar 01 04:00:00 EST 1976

OSTI ID:5516263

In 1969, the average price per ton of coal sold in the United States was $4.99, exactly what it had been in 1948. Though there had been some price fluctuation in the intervening years, it had been slight. During that period, only once (1957) had the price edged up over $5; only once (1963) had it fallen below $4.40. When average prices per ton jumped 25% in 1970, another 36% between 1971 and 1973, and 93.4% in 1974, it was obvious that something out of the ordinary was occurring in the United States coal industry. Moreover, these average price data actually understated the trend for new sales of coal because they aggregated current sales with sales made under agreements struck in earlier years. Because of these unusual developments, the Council staff began an analysis of the behavior of prices in the coal industry in July 1975. This study was undertaken in accordance with the Council's statutory mandate to review and analyze price behavior in individual industries which exhibit strong inflationary pressures. The rapid rise in coal prices which began in November 1973 was in large part the result of dramatically higher prices for imported oil. Anticipation of the United Mine Workers' strike was a major factor putting upward pressure on spot coal prices during the second half of 1974. These two unusual forces in the face of a relatively fixed short-term supply of coal drove its price up steeply. A somewhat less important factor contributing to the upward trend in prices during this period was the continuing increase in labor costs, a trend which had begun in 1970. The 1974 price increases in the coal industry were largely demand-induced.

• Research Organization: Council on Wage and Price Stability, Washington, DC (USA)
• OSTI ID: 5516263
• Report Number(s): NP-20948
• Country of Publication: United States
• Language: English

Related Subjects

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29 ENERGY PLANNING, POLICY, AND ECONOMY
294001 -- Energy Planning & Policy-- Coal
CARBONACEOUS MATERIALS
CHALCOGENIDES
COAL
COAL INDUSTRY
COAL PREPARATION
COAL RESERVES
COMPETITION
CONTRACTS
DATA
ENERGY SOURCES
EXPORTS
FOSSIL FUELS
FUELS
INDUSTRY
INFORMATION
INTERNATIONAL ORGANIZATIONS
LABOR RELATIONS
MATERIALS
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NUMERICAL DATA
OIL-EXPORTING COUNTRIES
OPEC
OXIDES
OXYGEN COMPOUNDS
PETROLEUM
PRICES
RESERVES
RESOURCES
SULFUR COMPOUNDS
SULFUR OXIDES
SUPPLY AND DEMAND
TRANSPORT
USA