exports and 83 percent of metallurgical coal exports. There are no published figures to indicate FOB mine price of overseas exports. The FOB figure presented in Table 3-14 has been estimated by taking the data on FOB prices in east coast ports and subtracting an estimate of the weighted average shipping and dumping charges per ton.

The most striking feature of the export market is the enormous price increase. During the period 1967-1972, while domestic coal prices increased by 60 percent, export prices increased by 124 percent! In 1972, the export price level was 82 percent above the average domestic coal price level. In 1960, a sample of District 8 mines reported that export prices lagged 11 percent behind the average price for all shipments and 19 percent behind domestic metallurgical shipments.

Much of the increase in export prices reflects an increase in world demand. Exports of metallurgical coal to Japan accounts for most of the increased U.S. exports. However, price behavior in this market is only partially explained by rising world demand. For instance, prices rose by 25.4 percent while exports fell by 25.2 percent in 1971. At the same time, in the domestic market a 12.6 percent price increase occurred while output declined 6.8 percent. In 1972, exports fell 3.3 percent while ore realization increased by 9.5 percent. During the entire 1970-1972 span domestic prices increased by $1.35 a ton as domestic production decreased by 1 percent; export prices increased $3.61 per ton while export tonnage decreased 28 percent.

Some of the price rise is certainly due to higher wage costs which increased about 46 percent during the period 1970-1972. However domestic production was subject to similar cost pressures yet domestic price increases were substantially smaller.

Further analysis of price behavior in export markets is hindered by a lack of data. No information is available concerning the prices of new export contracts relative to prices on existing contracts. One factor does stand out however, namely the structure of export markets. Concentration in the export market is significantly greater than in the case of domestic production. Twelve companies, members of the Coal Exporters Association of U.S., Inc., an affiliate of the National Coal Association, account for 75-80 percent of total exports.