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Coal price will improve by April, industry experts say


"We have demand for 43 million tonnes," he told the Brisbane Major Projects Conference.

"It's a good indicator that (buyers) have confidence in coal."

His comments were timely, coming as HSBC released figures showing Chinese manufacturing was to hit a 13-month high.

HSBC chief economist on China Hongbin Qu said the report "confirmed that the economic recovery continues to gain momentum towards the year's end".

Manufacturing in China has been closely watched as the coal industry waited for signs of improving demand.

"We're near the bottom and it's only up from here."

RBS Morgans chief economist Michael Knox said of all commodities, oil prices always hit the bottom first before beginning to rise, followed by metals including iron ore.

Metallurgical coal - used for steel production - was always later, followed by thermal coal.

"In coming months you will see a base in metallurgical coal," he said.

"You'll be able to say in a year's time that the low in metallurgical coal is behind us and you will see a rally (in prices).

"Six months later you will see a rally in thermal coal."