October 12, 2008

Arch Coal sees global coal supply deficit

Reuters reported that global coal supply will fall short by up to 35 million tonnes in 2008 and the deficit is set to grow going forward, ensuring that prices remain strong.

Mr Steve Leer CEO of coal miner Arch Coal Inc at an energy conference told analysts that "We estimate that global supply of coal will be short between 25 and 35 million tonnes this year. The estimate differs from one given in March, in which Arch Coal estimated the world would be between 30 and 40 million tons short of coal this year.

He told analysts that "We will end up using more and more coal going forward.”he added that very strong international markets were leading a strong domestic market.