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  • Coal Prices may Head Up

    -- Purchasing, 10/15/2009 2:00:00 AM

    UBS analyst Henry Kirn and Citi Investment Research analyst Brian Yu both expect higher coal prices in 2010 and 2011, due to increased U.S. and Chinese demand for metallurgical (coking) coal used in steel production and domestic demand for coal used in power generation. Yu expects prices for coking coal will settle at $200/ton in 2010 and 2011, up from earlier forecasts of $140/ton. Latest available data from the Energy Information Administration (EIA) has coking coal selling for $137/ton.

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