Prices for thermal coal at the port of Newcastle have set another record, jumping $7.65 to reach $124 a tonne.

According to electronic trading platform globalCOAL’s weekly index, South Africa’s Richards Bay prices also rose $3.78 to sit at $114.75 a tonne.

The Newcastle port prices are a benchmark for the Asian thermal coal market. Spot prices have risen by 32 per cent this year and are expected to go higher.

The intense pressure on prices follows flooding in Queensland’s Bowen Basin, China’s recent halt on exports for February and March, and disruptions to South Africa’s power grid.

South Africa’s state power utility Eskom requesting coal producers find an additional 5.4 million tonnes of thermal coal in the lead up to winter.

Industry analysts have predicted current high spot prices will likely contribute to significant price increases for major coal producers as they continue to negotiate 2008 Japanese financial year contracts.

Analysts at Citigroup and Goldman Sachs have lifted their forecasts for 2008 prices to over $100 a tonne for thermal coal and $200 a tonne for coking coal.

Goldman Sachs put its thermal coal contract price at $110 a tonne, up by 98 per cent from $55.65 last year, while Citigroup estimated $100 a tonne.

Both banks put coking coal prices for 2008 at $200 a tonne, up 104 per cent for contracts beginning in April.