Coal prices may climb on Japan crisis

by Commodity Online

Global coal prices are likely to advance further if power plants in Japan remained closed for long time.

Analysts said Japan is the world’s largest coal importer and if repair works at its nuclear reactors become long term, competition to buy steaming coal will heighten, which is projected to raise global coal prices.

Japan is estimated to have lost 9,700 megawatts of nuclear and 10,831 MW of thermal power following the devastating quake and tsunami, putting the onus on other plants to fill the gap.

Meanwhile, South Korea, the world's third-largest coal buyer said its economy would have no short-term impact on its coal supply as utilities own 20-day consumable coal in their inventories, or about 4 million tones combined.

It noted local coal demand is estimated at about 200,000 tons per day.

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