After a generally mild winter season in the US, many of the nation’s coal stockpiles were left higher than normal, playing a role in what many producers reported during their first fiscal quarters recently – a “soft” market for the industry.

However, an Associated Press report this week said coal production, especially in the eastern US, may be giving things a kick-start. Weekly output has been down approximately 2% so far in 2007, it said, citing a report from the Energy Information Administration.

In fact, average coal prices in the area are up $US5 a ton to $49 since January.

Stifel Nicolaus and Co analyst Paul Forward said that while prices are nowhere near last year’s, especially in the Central Appalachian region, the industry has “begun to turn a corner” after an estimated oversupply of 34 million tons was left at loadouts nationwide over the winter.

Currently, the reports said, coal production is still up 1.2% over this time last year even with the production changes that were made during this first quarter.

While prices recover, stock prices for producers are bouncing back in 2007 with Peabody Energy, Arch Coal, Consol Energy and Foundation Coal all substantially up.

While many profits for companies’ first quarters was down, all operators remained confident in the rebound of the market, citing the summer peak, and even an increase in international market exports to China and India.