Tuesday, June 24, 2008

Coal prices to triple

Following is an excerpt from a report in Reuters.
Merrill Lynch has raised its forecasts for contract prices of coal for power plants and steel mills in 2008, predicting that prices will jump by as much as 200 percent, after recent supply disruptions resulted in a severe global shortage.

Contract prices for coking coal, used to make steel, are expected to reach a record high of $300 a tonne, a three-fold rise from an agreed price of $98 last year, amid a "supply apocalypse" following recent weather-related supply disruptions in Australia, Merrill Lynch said in a research note on Friday.

The site http://www.eia.doe.gov/emeu/international/cokeforind.html gives the coking coal prices in previous years in various countries.

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