“Near-term markets reflect the strength of Asia re-emerging as the leader of global economic growth and increased coal consumption. China’s steel production rebounded in March, China’s coal imports are running at a record pace, significant new global generation is coming on line, and we look for a 10% increase in seaborne coal demand in 2012,” said Greg Boyce, chairman and CEO, Peabody Energy. “Lower U.S. coal-fired generation related to mild weather and coal-to-gas switching has reduced U.S. coal demand. During March, industry shipment reductions accelerated after a number of industry production curtailments were announced. Additional reductions are likely.”

Peabody is negotiating with select customers regarding reduced 2012 shipments and is lowering planned U.S. production.