Abstract
The paper starts with a brief review of recent trends in the international coal market and an examination of the linkage between coal and oil prices. It is argued that while oil prices had a significant impact on coal prices in the 1973–87 period, future coal price trends will be driven more by demand and supply developments in the coal market itself. Taking thermal coal as an example, future demand and supply developments are examined. Demand and supply are brought together by using an aggregate world supply curve. The plausible range of prices for 2000 is determined by reading off the supply curve at the appropriate projected demand levels.
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