"You have strong underlying fundamentals for coal," said Emmanuel Fages, a Paris-based analyst at Societe Generale SA. "Bottlenecks remain on the supply side, so Asia is sucking up resources even more from traditional suppliers of the West, like Colombia or South Africa. You are bound see price increases over the medium term."

China's coal imports may rise to 210 million tons in 2011 from an estimated 166 million last year, according to Lau. The country, which became a net importer of the fuel for the first time in 2009, boosted overseas purchases by 35 percent through November 2010, according to government data.

While oil imports to China will continue to increase this year, they may not match last year's 17 percent pace, as growth in refining capacity slows, Lawrence Eagles, a New York-based analyst with JPMorgan Chase & Co., said in a Jan. 10 note.

India may double imports of thermal coal to 104 million tons in the year ending March 2012, according to Coal Minister Sriprakash Jaiswal. That compares with 3 percent growth in oil consumption, according to the Paris-based IEA.

"Long-term fundamentals for coal are more robust than for oil or gas, because the price increases are really driven by speculative expectations at present for oil and gas," Fages said. If growth slows in China, it would take only about a month for oil and gas "to come down to much lower levels," he said.

Eoin Treacy's view Coal remains a key supply inelasticity situation as continued strong demand growth puts pressure on supply bottlenecks. As with all such instances, when supply is constrained by a lack of adequate infrastructure, weather, labour and accidents these factors put additional upward pressure on prices.

Coal futures have posted a progression of higher reaction lows since early 2009 and the pace of its advance has picked up since early 2010. A break of the medium-term uptrend, with a sustained move below $70, would be required to begin to question medium-term upside potential.

Coal & Allied appeared in a review of Australian high yielding companies in Comment of the Day on December 2nd and November 8th and despite its recent breakout, the annual gross 12-month yield remains 8.97%. The company is majority held by Rio Tinto, which helps to explain the relatively small float. Its mines are in New South Wales so the share is not particularly affected by the Queensland floods. A clear downward dynamic would be required to check current upside potential while a sustained move below $110 would be needed to begin to question the consistency of the medium-term uptrend.

New Hope Corp mines thermal coal in Queensland. The share hit a new peak in late 2008 and following a sharp reversion to the mean, represented by the 200-day MA, has been ranging with an upward bias. It is now testing the highs near A$5 and a sustained move below A$4.70 would be required to delay potential for a successful upward break.

Macarthur Coal's mines are in the Bowen Basin of Queensland. The share pulled back violently from the April peak but found support in the region of the 200-day MA and is now pressuring the upper side of the six-month range.

Riversdale Mining has anthracite, thermal and coking coal mines in South Africa and Mozambique. It is a clear leader among Australian listed coal shares and has become quite overextended relative to the 200-day MA.It encountered at least temporary resistance in the region of A$17 three weeks ago but a drop below A$15 sustained for more than a day or two would be required to indicate that a deeper corrective phase is unfolding.

Whitehaven Coal mines thermals and coking coal in New South Wales. The share has been trending consistently since late 2008 and a sustained move below A$6 would be required to begin to question medium-term upside potential.

Gloucester Coal produces both coking and thermal coal in New South Wales and elsewhere. It is majority owned by Singapore listed Noble Group and as a result is relatively thinly traded. The share remains in a consistent medium-term uptrend and is currently testing the 2008 peak. A sustained move below A$10 would be required to question medium-term upside potential.