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Australia & New Zealand Banking Group estimates that the price of coal in 2010 will increase by 19 percent. Coal price rise caused increased demand for coal from China. Coal price increase is estimated at $ 95 a metric ton.

Increased demand for coal from China due to climate change in some parts of China, so China’s government issued a policy restricting the use of electricity in order to ensure the resources needed for heating.

China’s coal production difficulty for China’s coal production center located in areas affected by snow storms, so that the coal mining exploration activities and production of coal impaired. Coal port stock dropped 18 percent in three weeks and the domestic power plant that runs on a very low level.

Power-station coal prices at Australia’s Newcastle port, an Asian benchmark, climbed 13 percent to $95.61 a ton in the week ended Jan. 8, according to the globalCOAL NEWC Index. A cargo shipped out of the harbor reached $100 a ton, UBS AG said in a note last week.

Spot prices above $100 a ton suggest Xstrata Plc’s contract price settlement of $83 to $85 a ton with Tokyo Electric Power Co. for the year starting Jan. 1, may be a “conservative” guide for the contract price for the year beginning April 1, Pervan said.

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