Boost to coal prices

WHITEHAVEN Coal expects thermal coal prices to remain buoyant after cooler than usual weather in northern Asia boosted demand during the March quarter.

The miner yesterday said producers had responded to the demand by buying coal rather than building new production capacity, which bodes well for the commodity’s prices.

“If this trend (of buying rather than building) continues, then thermal coal prices are likely to remain buoyant,” Whitehaven said.