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Friday, 27 November 09
CENTENNIAL SAYS ENERGY-COAL PRICE TO RISE AS CHINA SEEKS FUEL


Bloomberg reported that, Centennial Coal Co., an Australian producer of the fuel, said contract prices are expected to rise in 2010, with Chinese companies making “significant” enquiries about supplies for next year.

Increasing base-load electricity requirements are underpinning growing demand for power-station coal in Asia, Sydney-based Centennial said in a presentation filed to the Australian stock exchange today. China is anticipated to remain a net importer of the fuel, it said.

“We continue to see a growing strength in demand for thermal export coal,” Chairman Kenneth Moss said in speech notes before an address to the company’s annual general meeting in Sydney. “Chinese demand continues to be a leading contributing factor.”

Centennial, which has gained 56 percent in Sydney trading in the past six months, fell 2.4 percent to A$3.27 at 11:10 a.m. The benchmark S&P/ASX 200 Index dropped 2.4 percent.

Centennial forecasts an average export price of about A$79 ($71) a metric ton for the 2010 financial year, Moss said. Prices for power-station coal for immediate delivery from Newcastle port, a benchmark for Asia, rose 4 percent, gaining for a fifth week, according to the globalCOAL NEWC Index. The price climbed to $82.25 a metric ton in the week ended Nov. 20.
Source: Bloomberg



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