The U.S. Energy Information Administration continued to cut its domestic coal production outlook for 2021, this time slashing 8 million tons from its previous projection.

In its March short-term energy outlook, the agency said U.S. coal output will grow 8% to 581 million tons this year from 539 million tons in 2020. Despite the uptick, the latest estimate was 1.4% lower than the 589 million tons projected in February. It also marked the fourth straight month that the agency lowered its expectations for 2021 coal production.

For 2022, the EIA said domestic coal production will further grow by 29 million tons, or 5%, which is 480% higher compared to the 2022 growth projection outlined in the agency's February outlook.

The agency's positive outlook comes with the anticipated increase in coal generation, driven by the recent extreme cold weather in much of the country. Coal's share of electricity generation is estimated to increase to 23% in 2021 and 2022, from 20% in 2020.

Meanwhile, coal exports are expected to reach 84.5 million tons in 2021 and 88.6 million tons in 2022 from 69.1 million tons in 2020, according to the outlook.

Coal price is expected to reach $1.97/MMBtu in 2021, up from $1.91/MMBtu in the previous year, before falling to $1.96/MMBtu in 2022.