Goldman almost doubles Asia coal forecast on supply crunch

(Bloomberg) -- Goldman Sachs Group Inc. almost doubled its outlook for Asian coal prices as a global recovery in power demand and production issues in key mining countries combine to make supply scarce.

Benchmark Newcastle thermal coal will average US$190 a ton in the fourth quarter, up from a previous forecast of US$100, to meet demand in the northern hemisphere winter and taking account of a global rally in natural gas, analysts Paul Young and Hugo Nicolaci said Tuesday in a research note. The bank lifted its 2022 forecast to US$120 a ton from US$85.