ANZ Estimates That Coal Prices Increased 19 Percent, 2010

Australia & New Zealand Banking Group estimates that the price of coal in 2010 will increase by 19 percent. The increase in coal prices led to increased demand for coal from China. Coal price increase is estimated to $ 95 per metric ton.

Increased demand for coal from China due to climate change in several parts of China, so the Chinese government issued a policy restricting the use of electricity in order to ensure the resources needed for heating.

Chinese coal production difficulties for Chinese coal production center located in areas affected by snow storms, so that the exploration activities of coal mining and coal production disrupted. Coal harbor shares fell 18 percent in three weeks and the domestic power plant that runs on a very low level.

Power-station coal prices at Australia's Newcastle port, the Asian benchmark, rose 13 percent to $ 95.61 per ton in the week ended January 8, according to globalCOAL NEWC Index. A cargo shipped out of the port reached $ 100 per ton, UBS AG said in a note last week.

Spot prices above $ 100 per ton Xstrata Plc showed resolution of the contract price of $ 83 to $ 85 per ton with Tokyo Electric Power Co. for the year beginning January 1 may be "conservative" guidance for the contract price for the year starting April 1, Pervan said.