April 2nd, 2010 Largest coal producer, Xstrata Plc signed a coal...

April 2nd, 2010

Largest coal producer, Xstrata Plc signed a coal supply contract for electricity with a Japanese utility. The price of coal during the 12-month contract worth $ 98 per metric ton. Benchmark coal price offered by Xstrata rose by 40 percent. In the past year, coal contract prices at $ 70 $ 72 per metric ton. Coal contract price increases, because the economic recovery in Asia and increased demand for coal.

Analyst in Fairfax, said This reflects the increasing demand for thermal coal for power generation in Asia. Must directly relate to expectations for economic growth in the region and reflect the increased costs of coal mining in Australia.

Chinas coal imports more than doubled to 13.1 million metric tons in February, underpinned by power demand, according to customs data. The country paid about $92 a ton for coal in the month. Thermal coal prices to China on delivered terms rose to as high as $120 a metric ton in January from less than $90 a year earlier, Macquarie Group Ltd. said in a report this month.

Contract negotiations with Japanese customers will continue next week, Xstrata said in todays statement.

always look at the bright side of life :)