and secondly Power station coal to rise on China demand and supplies - UBS Wednesday, 08 Jul 2009 Bloomberg quoted UBS AG as saying that Power station coal prices in Asia may increase in 2010 because of higher demand from China, the second-largest energy-consuming nation and supply constraints.
According to the globalCOAL NEWC Index UBS has raised its 2010 forecast for the benchmark coal grade burned by Japanese utilities to USD 90 per tonne from USD 80 a ton in 201. Power-station coal prices at Australia’s Newcastle port an Asian benchmark climbed 6.5% to USD 73.13 a ton in the week ended July 3rd.
UBS said bottlenecks at Australian ports, heavy rain in Indonesia and increased imports by China constrained supplies of the fuel to Asian customers in 2007 and drove up prices. Market conditions are expected to tighten starting in the Q4 of this year and peak in 2011.
Mr Andreas Bokkenheuser UBS analysts led by Jakarta based said “We are once again experiencing an increasingly tighter coal market with a theme developing similar to 2007. China, the biggest producer and consumer of coal, burns the fuel to generate about 80% of its electricity.”
UBS analysts said power use is increasing in China, as light industries step up production after heavy industrial growth recovered in June. Australian and Indonesian supply growth remains low and mining shutdowns in China’s Shanxi province have added to regional supply constraints.
The analysts said price estimates for 2011 to 2013 have been reduced to factor in a possible supply response as coal producers address shortages.
(Sourced from Bloomberg)
So we can see from the two articles that China is going to wanta lot of thermal coal pushing the ptice higher .With Felix currently in some sort of a change of control action The amount of companies in Australia is shrinking a little more and this should push more shareholders into companies c such as cey
CEY Price at posting:
$3.08 Sentiment: Hold Disclosure: Held
