More promising news on long term thermal coal prices, this time...

More promising news on long term thermal coal prices, this time from Barry Fitzgerald's Garimpeiro today, where he writes that Citigroup recently increased its price forecasts for the March 2012-13 fiscal year to $US120 a tonne.

''This is on an expected rise in thermal coal's share of the electricity-generating capacity in Japan after the [Fukushima] nuclear crisis that hit the country,'' it said.

''But we also see the Chinese remaining significant importers due to the improving competitive position of imported coal versus domestic Chinese production.

''Indian imports will likely increase further and European demand is an upside risk [thanks to Germany's Fukushima's response].''

The planets continue to align for CPL.