According to Credit Suisse Group AG, power station coal may rise to USD 150 a tonne in the coming weeks, driven by extreme weather conditions, before declining in the year.
Mr Joachim Azria a New York based analyst with Credit Suisse said that “The unexpected cold weather so far this season has taken a toll on global energy inventories and reset energy prices to varying degrees. We expect coal prices to move above USD 150 in coming weeks and possibly higher if there are further significant disruptions to supply.”
Mr Azria said that prices first rose because of a colder than normal winter in the Northern Hemisphere, prompting restocking by countries including China. Further price increases were supported by supply fears because of heavy rains in Indonesia, Australia and Colombia, as well as floods in Queensland state.
According to IHS McCloskey, power station coal at the port of Newcastle in Australia’s New South Wales, the benchmark for Asia, jumped 4.5% to USD 131.80 a tonne in the week ended January 7th 2011.
Sourced from Bloomberg
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