Newcastle Coal Price Snaps 4-Week Losing Streak, Gains 2.8%

By Jesse Riseborough

Dec. 15 (Bloomberg) -- Power-station coal prices at Australia’s Newcastle port, a benchmark for Asia, snapped a four- week losing streak, gaining amid forecasts for demand to continue to rise next year.

The weekly index for thermal coal prices at the New South Wales port rose A$2.16, or 2.8 percent, to $78.25 a metric ton in the week ended Dec. 12, according to the globalCOAL NEWC Index. The index fell to its lowest in almost 14 months last week.

The value of Australian coal exports may more than double to A$18 billion for the 2009 fiscal year amid higher contract prices for the fuel and an estimated 4.6 percent rise in output, the Australian government forecaster said today. Demand from Korea, India and China is expected to rise on new coal-fired electricity capacity, it said.

Xstrata Plc, the world’s largest exporter of power-station coal, BHP Billiton Ltd. and Rio Tinto Group are among mining companies that ship coal through Newcastle.

The price has slumped 60 percent since trading at a record on July 4. The monthly globalCOAL index fell 15 percent to $91.36 a ton in November, from $106.92 the previous month.

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net