Coal markets will remain robust this year, according to Xstrata, the mining group, which said China and India's growing import requirements would support demand for both coking coal for steelmaking and thermal coal, used to generate energy.

Xstrata predicted imports of thermal coal would grow strongly in those countries where domestic supplies could not meet demand.

“Thermal coal spot prices are soaring,” analysts at Credit Suisse said. “The market is very tight due to the severe winter across Europe, China and the eastern US.”

Credit Suisse recently raised its average 2010 thermal coal price forecast to $90 a tonne, an increase of 28.6 per cent on the previous year.

Amrita Sen, analyst at Barclays Capital, said China and India's import requirements could surprise the market as coal was the preferred fossil fuel for power generation in both countries.

“A jump in China's power needs [due to cold weather] is imposing tremendous stress on its [energy] supply system, reflected in falling [coal] stocks at power generators,” said Ms Sen, who noted coal shortages had already led to power rationing in some parts of the country.

Both Barclays and Credit Suisse are concerned about the inability of coal supplies to react to rising prices due to bottlenecks in key exporting nations, South Africa and Australia, where port congestion and rail problems have not been resolved.

“The supply bottlenecks that plagued the coal market in early 2008 could well re-emerge this year, given the lack of investment in export infrastructure to increase flexibility and capacity,” said Ms Sen.