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UBS revised its coal price forecast up by 19.5% for the 2008 Japanese financial year, and 43.5% for 2009.
It attributed the price hikes to China becoming a net importer, growing demand from India and low exports from Indonesia – owing to low reserve ratio and domestic demand.
“Indonesian producers essentially fill the gap left by Australian and South African producers and should benefit from any increased demand,” UBS said.
“Our changes to price forecasts should benefit Australian producers next JFY.”
The brokerage upgraded its rating on Centennial Coal from reduce 2 to neutral 2.
