Recently, Australia’s thermal coal prices have soared, driven by China’s strong demand ahead of the summer.

It’s known that the thermal coal prices on the Newcastle index was US$122.75/to on May 2nd 2011, went up from US$ 122.23/ton in a week earlier.

It’s analyzed that as the current inventory of coal for electricity in China has been decreasing; while, the power demand would rise substantially by the coming of summer.

Affected by these factors, China might rush to purchase thermal coal from Indonesia and Australia over the summer months.