Coal markets will remain robust this year, according to Xstrata, the mining group, which said China and India's growing import requirements would support demand for both coking coal for steelmaking and thermal coal, used to generate energy.
Xstrata predicted imports of thermal coal would grow strongly in those countries where domestic supplies could not meet demand.
“Thermal coal spot prices are soaring,” analysts at Credit Suisse said. “The market is very tight due to the severe winter across Europe, China and the eastern US.”
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