For the third straight week thermal coal prices have hit record highs at the Port of Newcastle, indicating continuing high demand from South Asian markets.

According to electronic trading platform globalCOAL, a 7.8 per cent, or $9.04 increase drove prices to $125.48 a tonne in the week ending February 8.

A tight thermal coal market, exacerbated by China’s recent halt on exports to cover ongoing shortages and increased power demands during an intense coal snap, has resulted in a busy time for the port, with 41 ships loaded during the week ending February 11, compared to 36 the week before.

With Asian buyers looking for new thermal coal supplies, another 41 ships were queued for loading, up from 22 the previous week. Average waiting times for coal ships for the week were 7.26 days. According to the port’s website, exports from Newcastle increased by over 21 per cent, or 315,000 tonnes this week, jumping from 1.473 million to 1.778 million tonnes.

Over the last two weeks, Goldman Sachs increased its forecast for 2008 thermal coal contract prices to US$110 a tonne, almost double the 2007 price of $55.65. Citigroup and UBS have forecast $100, while JP Morgan Chase & Co has raised its 2008 forecast to $90 a tonne.