Bloomberg quoted Citigroup Inc said thermal coal prices may gain in the third quarter after wet weather in Australia Hunter Valley crimped production amid signs demand is reviving in Asia.

Citigroup analysts led by Mr Daniel Hynes said in a report that thermal coal prices for immediate delivery may rise back above USD 130 a metric ton. Power-station coal prices at Australia Newcastle port an Asian benchmark were USD 119.19 a metric ton.

Mr Hynes said in the June 17 report that “Wet weather has hit the coal market again with Hunter Valley thermal coal mines struggling to overcome the latest deluge of rain during this wet season. This is all coming at a time when Asian buyers look like picking up their buying activity.”

(Sourced from Bloomberg)