I have an inkling we should see CCC hit at least 12 cents some time soon, assited by the Force Majeure and higher coal prices and demand. The evidence is present with yesterdays and todays volume and obvious interest in CCC:
Thermal Coal
Flooding is affecting thermal coal, used by power stations, driving the price of supplies at the port of Newcastle in Australia?s New South Wales, the benchmark for Asia, to the most in 27 months. Prices jumped 3 percent to $126.10 a ton in the week ended Dec. 31, the most since Oct. 2008, according to IHS McCloskey, a Petersfield, U.K.-based provider of coal data.
?Blue-Sky Scenario?
?The flooding will provide further upside to international coal prices and a floor to Chinese prices,? Helen Lau, an analyst at UOB-Kay Hian Ltd., said by telephone from Hong Kong. ?It?ll easily take six to eight weeks, in a blue-sky scenario, before Australian supplies return to normal. Maybe it?ll take three to four months.?
