thermal coal markets on the move

Thermal Coal: Recent Market Developments

Reuters (29 Jan 2008) has reported that the GlobalCOAL price index for thermal coal, fob Newcastle, Australia jumped by US$9.00/tonne over the weekend, to a new record of $102/tonne.

This price move followed China's government directive on 25 January, to domestic port authorities to suspend exports of coal in February and March, to help address worsening power shortages in China.

Furthermore, power shortages in South Africa have led domestic power provider Eskom to request a further 5 million tonnes of domestic coal in the next three months, in order to help ensure power availability and to build inventories ahead of winter. Export tonnages will be diverted to domestic power stations during this period.

This is a sure sign that the coal markets are getting a shake-up. Watch for price rises and I suspect that we will see strengthening share prices for aussie coal suppliers and also with coal wannabes like this gem.

good luck
omg