By Daily Crux Editor Brandon Herrin:

Demand for coal is plummeting...

Spot prices for coal are down from $175 a ton to around $45. And coal producers may still need to reduce production by 50 million tons this year to bring supply and demand in sync. Many steel and utility companies, which depend heavily on coal, are turning to cheaper alternatives like natural gas... Some are renegotiating contracts with coal producers for smaller shipments and lower prices.

Utility companies American Electric Power and Southern Co. and the world's largest steel producer, ArcelorMittal, have all renegotiated contracts to receive less coal.

Coal stockpiles are building up quickly.

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