Coal Bottlenecks to Persist, Boosting Prices, CitiJuly 25 (Bloomberg) -- Coal port and rail bottlenecks in Australia, the world's largest exporter of the fuel, will persist through to 2014, helping to boost prices to records, according to Citigroup Inc. analyst Alan Heap.
From Citigroup
``Probably the overwhelming issue is rail,'' Heap said.``The devil really lies in the detail and that is a function ofsuch a disorganized, uncoordinated expansion program.''
Spot prices for coking coal have risen to as much as $380 aton and Xstrata Plc may have settled contracts with customers at$360 a ton this year, Heap said. Development of new blast furnaces in China, India and Brazil will increase demand for the fuel inthe longer term, he said.