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latest coal settlement prices , courtesy of wolverine from the gcl thread.

Analysts were predicting a large price drop this year , but its looking quite good for

coal producers at the moment.




Semi Soft Coal - Very Firm

Contract Prices Settled - Annual contract coal prices for 2007/08 are more or less settled. Semi soft prices have proved extraordinarily robust.


Main Settlements Were - Thermal coal US$55.60/t (+$3); hard coking coal $97/t ($-18); semi hard US$70-73 ($-16); Low Vol PCI US$65-67 (unchanged). Smaller semi soft producers settled at around US$63 (+$5), but Rio Tinto and Xstrata are understood to be holding out for $64-65.


Lower Value Coking Coals Fared Well - Thus PCI and in particular semi soft coals achieved much better prices than hard coking coals. The premium of semi soft to thermal increased to US$9/t, from $5.50. Historically it has been $2.


Demand is the Driver - In Europe PCI ratios increased. In Korea non hard metallurgical coals now account for 20% of met coal consumption, up from 3% two years ago. In India and China, increased use of local semi soft coals reduced dependence on imported hard coking. In Japan, however, technical limitations restricted such a marked shift. The genesis of the switch goes back to 2005 when a near doubling of hard coking coal prices, and concerns about future availability, pushed steel mills to increase the consumption of alternatives.


A Permanent Shift - Probably not. The narrowing gap between hard coking prices may now reverse the trend.


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Do you believe that 2008/09 will be a prosperous year for coal, especially thermal coal and maybe even coking coal (mind you I am not an expert). Would you have any suggestions

as to what would be a good buy atm.???? http://www.sharescene.com/html/emoticons/unsure.gif

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In reply to: daggie on Thursday 20/09/07 05:32pm



I notice the volume/interest has been up the last week in coal stocks, but so also has just about everything as the market in general recovers.

I like the these for the immediate future going on TA.



Below is the rest of my coal watchlist. Not all are pure coal plays, but all do have coal interests. I like CEY mt, but better off waiting for the st retracement to end first.



I hold a couple of these atm

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In reply to: hungry on Friday 21/09/07 08:07am

daggie, another to look at is GUJ in which a friendly takeover is occurring by INR . Well worth reading up on both.....cheers...plus I was told a trade of 5,000,000 or more shares went through at close but cant confirm that...cheers

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UPDATE 1-Xstrata fixes '08 coal contracts with Korean gencos


Thursday September 27, 2007, 6:44 pm





SYDNEY/SEOUL, Sept 27 (Reuters) - Xstrata Plc XTA.L, the world's largest thermal coal producer, has settled 2008 thermal coal supply contracts with two Korean utilities at prices nearly a third higher than a year ago, two sources said on Thursday.


State-owned utilities Korea South East Power Co (KOSEP) and Korea East West Power Co (KEWPO) have agreed to buy a total of 2.5 million tonnes of coal from Xstrata's New Lands coal mine at $68.50 a tonne and $65.50 a tonne for coal from Rolleston mine, they said.


The latest settlement price is up around 34 percent over the $51 a tonne paid for the previous year.


A growing supply squeeze in the Pacific market has forced Asian utilities to pay more for coal, which has seen its long-term contract prices jump as high as 34 percent and spot prices surge about 30 percent.


Expectations of a worsening supply shortage next year has also prompted Korean and Taiwan utilities to secure their 2008 supply contracts months ahead of traditional negotiation periods.


State-run Taipower has signed a string of long-term contracts ranging from six to 10 years to buy 17 million tonnes of thermal coal from Australian and Chinese suppliers, a company official said on Thursday. [iD:nSYD255742]


Industry sources said Xstrata's settlement at $68.50 a tonne was higher than rival Peabody's BTU.N and Rio Tinto Ltd (ASX: RIO.ax) RIO.L's agreed prices of about $66.50 because Xstrata's New Lands and Rolleston mines were in the northern state of Queensland, which gave buyers a freight advantage.



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